Quote (Ghot @ May 22 2019 12:58pm)
why tariff a good they no longer buy from us?
https://www.reuters.com/article/us-enterprise-prodt-crude-china/china-not-signing-deals-to-buy-u-s-crude-oil-enterprise-ceo-idUSKCN1SR2BYQuote
In the first half of 2018, China was the biggest importer of U.S. crude, averaging 377,000 bpd. In the six months ended February, the most recent data available, it has dropped to 41,600 bpd, according to the U.S. Energy Information Administration.
Trump put a 25% tariff on a large number of goods. So China put a 25% tariff on oil in the hopes it would rile up people in the rust belt. And due to the tariff and the decrease in Russian oil price, due not only to the stagnant Russian economy and a deal with Venezuala they divested in importing US oil.
as anyone can see from a quick google search, in 2018 we got destroyed in the Chinese import market on oil:
http://www.worldstopexports.com/top-15-crude-oil-suppliers-to-china/we're #10 in fact. when pre-2018 we sold them about 9x more oil per day.
them removing the tariff isn't a signal they're going to buy US oil, aka a "Trump big win", as the Reuters article says. It's actually a sign that they're finally divested enough in US oil, and by extension invested in Russian-Venezuelan oil, that the tariff is ineffectual. "But why drop an ineffectual tariff". because it shows they're reasonable and trying to work with the US, even though they aren't.
This post was edited by thesnipa on May 22 2019 01:09pm