SKEP + 229 SK August 11, 2019 (edited) . Edited August 16, 2019 by SKEP Quote Share this post Link to post Share on other sites
ceo_energemsier + 1,818 cv August 11, 2019 5 hours ago, SKEP said: Unipec a subsidiary of Chinese Oil Company Sinopec just placed order for 2 mm bbls of US oil for mid September delivery. (Unipec has USA subsidiary HQ in Houston) It's significant, as it is the first order post the additional 10% tariff announcement from Trump China is scheduled to receive 11 mm bbls of US crude in August per tracking data. These deliveries may help set a new US weekly crude export record. Is the Unipec order the sign that China plans to continue to buy US oil ? Or is this the last order before China retaliates against US for wanting China to abide by WTO agreement. HOPE FOR THE BEST EVERYONE thinks China will hold out till the next election before negotiating an agreement. A wise old sage once told me . . . When EVERYONE thinks something . . . . EVERYONE is usually WRONG. CHINESE JOINT VENTURES Most don't realize there are many Chinese joint ventures with US oil and gas companies. Most don't realize there are many Chinese projects being developed in US oil and gas industry. Most don't realize US refiners buy crude from two of the Canadian Oil Sands largest producers owned by Chinese oil companies. China restricts US business from ownership in most Chinese industries . . . . But has NO problem investing in US industry. Trump should void all Chinese investment in US oil and gas industry due to national security concerns if they tariff oil or block US oil access to Chinese markets. Hell, why not a moratorium on ALL Chinese investment in United States. Reciprocal Policy. Actually, it would be ironic if China limits or prohibits US oil imports to China while they have substantial investment with those very same companies. Plus, smart buyers will leverage US purchases against other suppliers for best pricing. . . . . going forward US condensate, naptha and NGLs will dominate petrochemical stock for years to come. If those JVs with Chinese companies are voided, would the US companies pay back the investments made by the Chinese companies? Chinese are buying oil to reduce the impact of Iran embargoes on the supply cuts. These "major" announcements are good but also if you are in the physical trade of crude, you would know that the Chinese and others have also been buying US crude from 3rd party sources as well and reverse ligthering , in addition to buying US crude via third parties and blending crude oil purchases from storage points in various countries. And as far as China prohibiting US crude imports, the Chinese companies that have JV investments in the US, will be exempt from that policy and also those companies would still be "price shocked" proof for any tariffs put on the crud oil since those companies would be getting share of their equity crude oil based on the structure of their JVs. Quote Share this post Link to post Share on other sites
SKEP + 229 SK August 11, 2019 (edited) On 8/11/2019 at 4:56 PM, ceo_energemsier said: . Edited August 16, 2019 by SKEP Quote Share this post Link to post Share on other sites
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