incredible! The trade war has just ceased, and 10 US oil tankers are queued to enter China.
Last week, as US-China trade relations tightened, many US-exported products piled up in various ports in China, receiving unusually strict and frequent inspections, making stays longer than before; including California fruit, Ford cars are waiting for China Customs officials are released after inspection.
The corporate group said that China is reminding the United States of how important the Chinese market is for US exports.
On this Sunday (May 19), China and the United States issued a joint statement on bilateral economic and trade consultations in Washington. Sino-US trade war, no fight.
President Xi Jinping and Vice Premier Liu He said in an interview with the media on the morning of May 19 that the biggest achievement of the Sino-US economic and trade consultation was that the two sides reached a consensus, did not fight trade wars, and stopped adding tariffs to each other.
Liu He said that this was a positive, pragmatic, constructive and fruitful visit. The two sides reached many consensuses on developing an active and healthy Sino-US economic and trade relationship. The most important reason for the positive results of this consultation is the important consensus reached by the two heads of state. The fundamental reason is the needs of the people of the two countries and the world.
10 American tankers are lined up to enter Asia! Will China be the biggest buyer in the United States?
According to the latest data, China's current crude oil imports have reached 9.6 million barrels per day, and will maintain double-digit growth in 2018. Another data shows that the US crude oil exports exceeded 2.5 million barrels per day for the first time, and crude oil production has reached 10.723 million barrels per day, a record high. Under this circumstance, the two oil powers of China and the United States seem to have sparked new sparks!
Ten supertankers lined up to load, and the US exported Asian crude oil to a new high!
Some crude oil traders recently said that nearly 10 supertankers are being lined up on the US Gulf Coast. Each ship is loaded with about 2 million barrels of crude oil. They will arrive in Asia in July this year, and their biggest buyer is China.
According to Eikon trade flow data, US crude oil that arrived in Asia in May reached a record high of nearly 25 million barrels, including China, South Korea and India. Foreign media estimate that the number of US crude oil arrivals in Asia in July this year is likely to exceed May, setting a higher record!
After the shale oil revolution in the United States, the production of low-sulfur light shale oil was blown out, but the US refinery was tailor-made for heavy crude oil, requiring a large import of medium-heavy crude oil to maintain maximum efficiency. In this case, the best option for the United States is to export these light crude oil. According to the S&P, the United States will export more than 4 million barrels per day of light, low-sulfur crude oil in 2025, of which more than 2.5 million barrels will be shipped to Asia.
Contrary to the United States, Asian countries, especially China, prefer light crude oil. China's crude oil imports from countries such as Angola and Russia are basically light crude oil. In fact, in addition to oil giants such as PetroChina, local refineries that account for a quarter of China's total refining capacity also hope to obtain light crude oil to increase production more efficiently. In addition, considering the environmental protection and other factors, the advantages of light and low-sulfur crude oil are much greater. At present, the state has introduced policies to reduce the sulfur content in gasoline.
US 1/5 crude oil exports to China, the global energy pattern will change!
A strong driver of the surge in US crude oil exports is the widening spread between WTI and Brent crude oil – the difference between the two at the beginning of the year was only $2-3/barrel, and it is now close to $8/barrel. WTI is the benchmark price of US crude oil, while Brent crude oil is the reference standard for crude oil in other countries such as Russia. The price difference of 8 US dollars is enough to cover the transportation cost of US oil transportation to Asia. Cheap price has become a very important advantage for US crude oil. .
It is precisely because of these advantages of US crude oil that China’s crude oil purchases from the United States have gradually increased. In 2016, China imported about 20,000 barrels per day of US crude oil. By 2017, it had soared to about 200,000 barrels per day. By the year of January 2018, the volume of imported crude oil had reached about 300,000 barrels per day. Today, China has become the second largest exporter of crude oil in the United States. One-fifth of US crude oil exports will enter the Chinese market, and the United States has also become one of China's top ten sources of crude oil imports.
Two days ago, China and the United States jointly announced that they would meaningfully increase US agricultural products and energy exports. In the future, it is likely that more US crude oil will enter the Chinese market. China is already the world's largest importer of crude oil, and the United States is about to become the world's largest crude oil producer. If these two major crude oil countries (and the two largest economies in the world) cooperate in the field of crude oil, the global energy trade pattern is likely to be this. change!
Do not fight trade, China and the United States win. Some rumors or not break!
The Sino-US trade war came to an end. Unsurprisingly, we won again. However, unlike the past, this time the United States also won, it is a win-win situation. According to reports, we have promised the United States to reduce the trade deficit, so the United States won; and because it wants to reduce the trade deficit, China will increase the purchase of goods and services from the United States, so as to meet our growing consumer demand and promote high-quality economy. Development, so we also won.
The joint statement highlighted that the United States hopes to expand its energy exports to China, which means that the United States’ previous war to eliminate Saddam Hussein and so on was for the lie of oil. The United States has its own energy sources and hopes to export, but in order to rob others of the energy and cost huge financial resources, and the lives of expensive Americans, are Americans crazy? We have always heard that the United States wants to contain China's energy imports, and we spend a huge price to develop the Navy, to break through the first island chain, to establish military bases and ports in Pakistan, the primary purpose is to defend the energy lifeline. The actual situation now is that the United States originally wanted to sell energy to us!
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