Teapots Cut U.S. Oil Shipments

It has begun: independent Chinese refiners are cutting their U.S. crude oil imports in anticipation of the tariffs Beijing threatened in response to the latest Trump tariff threat. I wonder how long they could go on with the tariff exchange.

Share this post


Link to post
Share on other sites

This is really interesting. I had forgotten about the teapots. So, I see 25% potential tariff from Beijing on US crude hanging over them. So where are they making it up? 

Share this post


Link to post
Share on other sites

5 hours ago, Royalblood said:

This is really interesting. I had forgotten about the teapots. So, I see 25% potential tariff from Beijing on US crude hanging over them. So where are they making it up? 

Oil Traders Ready for Musical Chairs as China Tariffs Loom

China, in turn, is likely to replace the U.S. oil with increased purchases from top suppliers Russia and Saudi Arabia.

Share this post


Link to post
Share on other sites

28 minutes ago, Tom Kirkman said:

Oil Traders Ready for Musical Chairs as China Tariffs Loom

China, in turn, is likely to replace the U.S. oil with increased purchases from top suppliers Russia and Saudi Arabia.

It would make more sense for China to replace the US oil by iranian oil. This move could limit the impact of US sanctions on Iran and with a less affected iranian oil production the OPEC production would be higher and would reduce the pressure on the oil price. I'm sure the Chinese could even get a discount on the iranian oil.

So we can add OPEC to the musical chairs : China importing iranian oil instead of the US oil and in exchange Iran agrees to an increase of the OPEC production benefiting Saudi Arabia and Russia.

Everyone is happy :

  • Iran is less affected by US santions
  • China can import cheaper oil
  • Saudi Arabia and Russia can increase oil production

And at the end the bad guy (Trump) get punished for having applied sanctions on Iran, tariffs on China and Russia and pressure to increase oil production on Saudi Arabia.

 

Share this post


Link to post
Share on other sites

4 minutes ago, Guillaume Albasini said:

It would make more sense for China to replace the US oil by iranian oil. This move could limit the impact of US sanctions on Iran and with a less affected iranian oil production the OPEC production would be higher and would reduce the pressure on the oil price. I'm sure the Chinese could even get a discount on the iranian oil.

Yep.  I already commented about this a day ago over on LinkedIn, continuing on my longrunning commentaries on LinkedIn about the rise of the PetroYuan:

https://www.linkedin.com/feed/update/urn:li:activity:6415408187020800000

  • Upvote 1

Share this post


Link to post
Share on other sites