Tariff Dispute Threatens China’s Thirst for U.S. Oil

as declared in For the American oil industry, which President Donald Trump has declared is entering an era of "energy dominance," an escalating trade fight with China would represent a lost opportunity for U.S. efforts to break into a strategic market. China has been the biggest new buyer of the millions of barrels of oil unlocked by U.S. shale companies from dense rock formations. Now the second-largest consumer of U.S. oil exports after Canada, China has seen its demand rise 200-fold over past two years and last year bought a fifth of...

Oil drops amid signs of mounting supply from Arabia to U.S.

In the U.S., President Donald Trump was said to be considering tapping the nation's emergency oil supply to tame rising fuel prices. "It very much seems like a continued reaction to potential supply increases," said Bart Melek, head of global commodity strategy at TD Securities in Toronto. At the same time, investors focused on the trade tensions between the U.S. and China that could threaten energy demand. Meanwhile, a senior Iranian official urged Trump not to use the emergency stockpiles and urged the American president to drop sanctions. Libya's El-Feel oil field was said to pump 70,000 barrels a day, according to a person familiar with the situation.

U.S. Sanctions Could Add $50 To Oil Prices

according to The oil industry might not be able to produce enough oil to meet global demand in a few years' time. But over the long-term, there are also questions about the global oil industry's ability to supply enough oil to the market. U.S. shale growth over the past decade has been so explosive that it helped crash oil prices in 2014. Until recently, the oil market assumed a loss of about 0.5 mb/d from Iran because of U.S. sanctions. So based on those assumptions, we estimate zero Iran exports could push oil up by $50/bbl if Saudi caps out.

A Clash Between U.S. And Iran Could Send Oil Prices Above $100 And Bad News For China

If that turns out to be the case, it will disrupt Middle East oil supplies and push crude oil prices above $100 level. That could be bad news for China – because the Middle East supplies close to 50% of China's oil imports. It could be good for Russia, which will have to sell more oil to its own allies, including China. They, too, want to be the guarantors of the free flow of oil supplies to its own European and Asian allies, including China. Thus, there is a potential for open military confrontation between the two countries that could send oil prices soaring.

collected by :Frank Ithan