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Six ships carrying about 12 million barrels of US crude are heading to China, just as Beijing prepares to impose its first US oil tax next month.
Although shipments may be diverted, shipments highlight the growing demand for US crude in Asia, as tensions mount between the two largest economies in the world. China, briefly one of the major buyers of American oil, has reduced its shipments since the start of the trade war.
Beijing is now considering taxing a series of US products, including crude oil, as of September 1st. This would make Permian's crude oil a barrel at about 3 dollars a barrel more expensive for Chinese buyers, making it less attractive.
The six ships, which are due to land in China until October, could be redirected and shipments resold at a better value. US oil sometimes shipped to the Chinese market from transhipment areas in Malaysia, Singapore or the Caribbean could also be shipped elsewhere.
To contact the reporter about this story: Sheela Tobben in New York at [email protected]
To contact the editors responsible for this story: David Marino at [email protected], Catherine Traywick, Reg Gale
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