China is the world’s biggest market for crude, importing around 9.7 million barrels a day in the year up to June. In the first half of 2018, before the dispute, China was the biggest importer of U.S. crude, averaging 377,000 barrels per day. In February this year U.S. crude exports had dropped to just 41,600 barrels per day. On Sept. 1, Beijing imposed a 5 percent tariff on U.S. crude oil imports. The decline in U.S. oil and LNG exports to China could now get worse. Here, we look at the impact of the current trade war on the American oil and gas industry and after its resolution.
The impact on US crude exports
Although American exporters have diverted some crude towards India and South Korea, this has not made up for the loss of exports to China. U.S. shale oil and gas exploration and production companies have been hard pressed from increases in output which reached 12.4 million barrels a day in September and depressed crude prices. For example, West Texas Intermediate crude was around $75 a barrel a year ago, but was just $55.47 on Sept. 27, 2019. Read more https://www.rigzone.com/news/oil_demand_shrinks_under_weight_of_uschina_trade_war-03-oct-2019-159960-article/