HOUSTON (Reuters) – China’s threat on Friday to slap a 5% tariff on U.S. oil imports could further soften demand for physical crude at hubs along the U.S. Gulf Coast, where exporters already have taken to shipping crude overseas without firm buyers, traders said.
PADD 3 inventories last week rose to the highest in a month, at 225.1 million barrels, and were 12.4 million barrels higher than the same week last year, U.S. government data showed. Supplies have climbed as two new pipelines carrying U.S. shale from the Permian Basin opened last week, pushing key coastal grades to the lowest in a year.
Friday - China - % - Tariff - US
On Friday, China proposed clamping a 5% tariff on $75 billion in U.S. goods including oil for the first time in response to President Donald Trump’s plan to impose 10% tariffs on Chinese-made consumer goods on Sept. 1 and Dec. 15.
The tariff on oil imports would likely “shut off flows from the U.S. to China,” leaving exporters to market a rising tide of shale oil to South Korea and Japan, said John Coleman,...
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