U.S. crude oil shipments to China have “totally stopped”, the President of China Merchants Energy Shipping Co (CMES) said on Wednesday, as the trade war between the world’s two biggest economies takes its toll on what was a fast growing businesses.

Washington and Beijing have slapped steep import tariffs on hundreds of goods in the past months. And although U.S. crude oil exports to China, which only started in 2016, have not yet been included, Chinese oil importers have shied away from new orders recently.

“We are one of the major carriers for crude oil from the U.S. to China. Before (the trade war) we had a nice business, but now it’s totally stopped,” Xie Chunlin, the president of CMES (601872.SS) said on the sidelines of the Global Maritime Forum’s Annual Summit in Hong Kong.

Ship tracking data in Refinitiv Eikon confirmed that U.S. crude oil shipments to China ground to a halt in September.

“It’s unfortunately happened, the trade war between the U.S. and China. Surely for the shipping business, it’s not good,” the CMES president said.

He also said the trade dispute was forcing China to seek soybeans from suppliers other than the United States, adding that China now bought most its soybeans from South America.

In this grafic of crude oil shipments to ChinaU.S. we see that the crude oil exports to China have risen since 2017 but have collapsed since a trade war between Washington and Beijing broke out in mid-2018.

Japan understands the importance of oil extraction, which will make it independent of other countries. Due to the current political situation, Japan will be even more eager to extract the oil resources itself in order to avoid the pressures and high oil prices proposed by other countries. The oil vision project is working in this direction to accomplish this task.

Reuters news

Categories: News