Trump’s tariff war with Beijing hits the US oil trade
China is holding off buying US crude as to-and-fro tariff threats between the countries continue, leaving the door open for India to step in as new US oil buyers
New York — China’s largest refiner, Sinopec, will hold off on buying US crude as an escalating trade war between Beijing and Washington threatens to make American imports more expensive, according to a person familiar with the matter. The state-run firm will delay buying any US oil for September shipment until it is clear when China’s 25% tariff threat on US crude imports might begin, the person said. The move comes as US President Trump has directed US trade representative Robert Lighthizer to consider increasing proposed tariffs on $200bn in Chinese goods to 25% from 10%. Sinopec had already been reducing its US oil purchases, mainly because the discount for West Texas Intermediate (WTI) crude against international marker Brent had narrowed. In July, Sinopec bought four supertankers of US domestic crude, compared with six to seven in June. The company didn’t purchase any US crude for August loading for similar reasons, the person said. Sinopec media officials in New York didn’t im...
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