rss icon Subscribe
desktop mobile

China Fixes First U.S. Crude Cargo Since Latest Tariff Threat

File Image: A VLCC loads alongside in the port of Corpus Christi, Texas (CREDIT: Port of Corpus Christi, Texas)

Chinese oil trader Unipec chartered a supertanker to ship U.S. crude to China in September, trading sources said, the first such cargo since U.S. President Donald Trump announced additional tariffs on Chinese import, ending a monthlong trade truce.

Unipec, the trading arm of state refiner Sinopec , has fixed the Very Large Crude Carrier (VLCC) Anne to load U.S. crude in mid-September, according to a shipbroker and Refinitiv Eikon data. VLCCs are capable of transporting about 2 million barrels of crude.

Unipec has three other vessels, the New Caesar, the KHK Empress and the New Melody, either loading or set to depart the United States this month, the data showed.

China is set to receive nearly 11 million U.S. barrels in August, the highest since June 2018, according to Refinitiv Eikon vessel tracking data. Another 4.1 million barrels are currently set to arrive in September.

Tankers loading in August and September are estimated to arrive by October and November, market sources said.

China was the third biggest buyer of U.S. crude in June, a period of relative calm during the prolonged trade war between the world's two biggest economies.

Since then, Trump has announced new tariffs. While China has imposed levies of its own on most imports from the United States, it has thus far not elected to do so with crude oil. China's purchases of U.S. crude have dropped sharply from record levels last year.

U.S. crude's discount to Brent <WTCLc1-LCOc1> narrowed to the smallest since July 2018 on Friday, falling to as little as$4.25 a barrel. That makes U.S. crude less attractive to foreign buyers, U.S. crude sellers and traders said.

"At this WTI/Brent level no one should be buying U.S. crude if they have a choice," one trade source said.

Reporting by Devika Krishna Kumar

Aug 9, 2019

 

People & Company News

Seabulk Completes First Methanol Shipment

Seabulk Tankers, a subsidiary of SEACOR Holdings, has announced the successful delivery of its first methanol parcel chemical shipment aboard the articulated tug-barge (“ATB”)

Hurtigruten Trio Due for Hybrid Power Upgrades

BATTERY POWERED: Hurtigruten is converting three more ships to become hybrid-powered. Photo: MAXIMILIAN SCHWARTZ/Hurtigruten

Three vessels lined up for large-scale makeovers will be transformed to hybrid powered expedition

JNPT Builds New Liquid Cargo Jetty

Photo: PIB, Govt of India

Indian Minister of State for Shipping, Mansukh Mandaviya laid the foundation stone for development

Contracts

ICE, Magellan to Offer Dock Capacity to Houston Oil Futures Customers

Intercontinental Exchange Inc and Magellan Midstream Partners LP said on Wednesday they would auction dock capacity at Magellan's terminals in Galena Park and Seabrook, Texas

Baltic Index at 2-week High on Capesize, Panamax Strength

AdobeStock / © Igor Strukov

The Baltic Exchange's main sea freight index climbed to a near two week high on Tuesday propelled

St. Croix Upgradess with New Lake Assault Boats Craft

Photo: Lake Assault Boats

The St. Croix County Sheriff’s Office in Hudson, Wisconsin, earlier this summer took delivery of a

Maritime Apps