U.S. crude exports to China have sharply declined, nearing zero, due to escalating trade tensions and tariffs between the two countries. While U.S. oil makes up only about 1% of China’s total imports, the drop reflects broader trade breakdowns between the world’s largest economies.
With China imposing an 84% tariff on U.S. goods, U.S. crude becomes nearly double the price, adding $51 per barrel to the cost of $61 WTI, making it uneconomical for Chinese refiners, according to Ivan Mathews of Vortexa.
If current tariffs remain, U.S. crude exports to China could fall to zero.Instead, some of this crude will be redirected to other Asian buyers, including India and Japan, while China may turn to Middle Eastern suppliers like Oman and the UAE, and possibly increase purchases from Iran and Russia.
