Reportedly, China is anticipated to dramatically lower its intake of the U.S. crude imports in the upcoming weeks, energy analysts warned after the recent outbreak in trade war tensions amid the world’s two biggest economies. The retaliatory tariff battle amid the U.S. and China has earlier drive oil prices plunging, in large part owing to fears about a severe global financial dropdown and potentially even the U.S. recession. The recent session reported crude dropping at one stage to a 7-Month low. The US President Donald Trump elevated the stakes in his government’s protracted battle with Beijing in the last week, intimidating to slap new charges against China from September 1.
The U.S. has then blamed China of being a “currency manipulator,” since the yuan dropped to levels against the dollar that were not seen in over a decade. In retort, energy analysts anticipate China to aim US oil imports. Stephen Brennock—Oil Analyst at PVM Oil Associates—said to CNBC, “I feel it is a virtual blowout that will slow to a drop and may even toil to a complete halt.” Recently, Chinese buyers revived their interest in the U.S. crude, as imports surged to a 9-Month high of 247,000 BPD (barrels per day) in May, as per to figures from the EIA (Energy Information Administration).
On a related note, recently, oil dived by 4% to a 7-Month low on unexpected US stock build and trade war. The oil prices slumped by more than 4% extending recent hefty losses after a surprise build in the U.S. crude stockpiles and apprehensions that demand will plunge owing to Washington’s escalating trade battle with Beijing. The Brent crude futures were dropped by 4.3% at $56.42 a barrel and the U.S. WTI crude futures were down by or 4.4%, at $51.25. The gasoline inventories surged by 4.4 million barrels, with the U.S. Gulf Coast gasoline stocks reaching the highest on record for this period of the year, the U.S. EIA data showed.