Bilateral trade disputes could drive U.S. oil exports to China down from the record high levels registered earlier this year.
U.S. shipments to China reached a nine-month high of 247,000 barrels per day in May, according to the U.S. Energy Information Administration (EIA). But industry analysts told CNBC on August 12 that the figure was likely to plummet soon.
Matthew Smith, the director of commodity research at ClipperData, said that delivery volumes were sure to suffer if China’s government decided to impose high tariffs on U.S. supplies. Buyers appear to be concerned that Beijing is running short on U.S. goods to target and will set its sights on oil next, he told CNBC.
Stephen Brennock, an oil analyst at PVM Associates, spoke more emphatically, saying that he expected China to take aim at U.S. oil shipments. “I think it is a virtual shoo-in that volumes will slow to a trickle and may even grind to a complete halt,” he said.