Growing US Oil Sales to China Make Mideast Suppliers Find New Markets, Reports Suggest
The increasing US oil exports to China have forced Middle Eastern suppliers to search for other markets, The Wall Street Journal reported on Monday.
The US crude sales to China have grown from 0.4% in January to 7% through mid-September, the report said citing London-based market intelligence firm Vortexa Ltd.
The newspaper also said market share for China’s biggest traditional supplier - Saudi Arabia - dropped from 19 percent to 15 percent over the same period of time.
Saudi Arabia recently reduced prices for its crude oil for Asian buyers while exports from other Middle Eastern producers are also being affected, the report added.
China agreed to increase purchases of US energy products by $52 billion in the next two years, text of the Phase One trade deal revealed in January.
The US energy products will be part of the total $200 billion worth of US goods that China will import through 2021, according to the agreement signed by US President Donald Trump and Chinese Vice Premier Liu He at the White House.
The agreement listed the US energy products that China will be buying as crude oil, liquefied natural gas, refined petroleum and coal.
China is the world’s largest buyer of oil and the United States is the largest producer of the commodity.
- Source : Sputniknews.com
