China spares U.S. crude oil from its tariff list.
On Wednesday, China’s commerce ministry announced 25% tariffs on $16 billion worth of American goods. While the list targets fuels such as diesel, gasoline and propane, it excludes U.S. crude oil.
It’s no secret that shale revolution has been boosting U.S. crude production to unprecedented levels, thereby helping the nation lower its supply costs and attracting demand from China and other Asian nations. U.S. crude exports to China had risen to 15 million barrels in June - the highest volume since 1996, according to U.S. Census Bureau and Energy Information Administration data.
Earlier, the Chinese government was reportedly considering tariffs on U.S. crude, but changed its mind following consultations with industry associations and corporations. That reflects how much of a market clout U.S. crude exporters potentially have on Chinese refineries, more so as the latter continue to face supply disruptions from Venezuela and Iran.