China reaches only 26% of oil imports from the U.S. under trade deal

China U.S. oil imports

Although China has accelerated its crude oil, liquified natural gas (LNG) and other hydrocarbons imports from the U.S., during the second quarter of 2020, has only reached the 26% of the total amount set out in the Phase 1 trade deal with Washington.

According to data reviewed by Reuters, based on Chinese customs, during the first 10 months of this year, the asian country has just completed purchases of crude oil, LNG, propane, butane, and other subproducts totaling $6,61 billion. Which is equal to 26% of the $26,3 billion commercial target.

In August, Chinese officials reaffirmed their commitment to meet the accord; although is highly unlikable to be met before the year ends. Indeed, China’s imports from the U.S. have increased sharply during 2020’s second half, according to Reuters.

In June, the mark was at about $1,29 billion of total trade; compared to the $6,61 billion amassed in October, is an increase of nearly five times.

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Source: Reuters

Highest record of crude imports of China from U.S.

The product with the sharpest increase was propane, a component of liquified petroleum gas, used as fuel for cars, heaters among other uses. Since July, this was the most acquired petroleum good from China to the U.S.

The boost in demand was driven by China’s revitalized manufacturing sector, and by new processing units of Zhejiang Petroleum & Chemical refinery. Also, as China continues to replace coal with natural gas, LNG demand is expected to be firm and robust.

During November, according to Refinitv flows data, China received almost 1,26 million cubic meters of LNG.

As for crude oil, China’s imports from the U.S hit a high record of 12,5 million tons during October; worth $3,88 billion. This is equal to 950,000 barrels a day, and represents a year-to-year increase of 652,41%, the highest since records began.

Nevertheless, this high pace may slow down, as Saudi Arabia and Russia, two of the top producers of oil the world, aim Chinese market with increased flows and competitive prices.

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