China places first-time tariff on U.S. crude

China places first-time tariff on U.S. crude
By JESSICA SUMMERS AND SHEELA TOBBEN on 8/23/2019

NEW YORK (Bloomberg) - Crude plunged to a two-week low after China announced tariffs on U.S. crude oil for the first time as the trade war between the world’s biggest economies escalated.

Futures fell as much as 3.5% in New York on Friday, erasing this week’s gain. China will impose additional levies on $75 billion of U.S. goods, with tariffs of 5% on American crude. China was the ninth-largest buyer of U.S. crude during the first five months of this year.

Last year, Beijing removed crude from a list of goods targeted for tariffs, signaling the importance of American oil in the global market. The decision to include it now shows how the trade spat has intensified, forcing it to use duties on the strategic commodity as ammunition.

“It’s a direct strike on U.S. crude exports, which is why you are seeing this sort of out-sized reaction,” said John Kilduff, partner at New York-based Again Capital LLC. “China had been an aggressive U.S. crude buyer.”

Top U.S. Oil Buyers

China’s announcement comes as leaders from the Group of Seven nations prepare to meet in France and central bankers gather in Jackson Hole, Wyoming, to discuss issues including fears of a global economic slowdown.

New York-traded crude futures have dropped more than 7% this month as the protracted trade dispute fanned fears about stunted demand. U.S. fuel stockpiles have also increased, aggravating concerns about a potential glut.

West Texas Intermediate crude for October delivery declined $1.46 to $53.89/bbl at 9:46 a.m. on the New York Mercantile Exchange, after falling to as low as $53.40/bbl.

Recession Risk

Brent for October delivery dropped $1.01 to $58.91 on the ICE Futures Europe Exchange. Its premium to WTI for the same month traded at $5.02/bbl.

The Chinese tariffs will take effect in stages between Sept. 1 and mid-December, according to the announcement from the Ministry of Commerce. The tariff on U.S. crude will begin next month. This mirrors the timetable the U.S. has laid out for 10% tariffs on nearly $300 billion of Chinese shipments.

While the U.S. isn’t among the biggest crude suppliers to China, America’s shale boom has made it one of the top producers in the world along with Saudi Arabia and Russia. At a time of OPEC output cuts, sanctions that are strangling supplies from Iran and Venezuela, and rising geopolitical tensions in the Middle East, the import-dependent Asian nation needs reliable crude imports to sustain economic growth.

“Escalating trade tension increases the risk of the world moving into recession,” said Giovanni Staunovo, an analyst at UBS Group AG in Zurich. “That could result in even lower oil demand next year, and an even more oversupplied oil market next year.”

中国对美国原油征收首次关税
由JESSICA SUMMERS和SHEELA TOBBEN于8/23/2019

纽约(彭博社) - 由于全球最大经济体之间的贸易战升级,中国首次公布对美国原油的关税后,原油价格暴跌至两周低点。

周五纽约期货跌幅高达3.5%,抹去了本周的涨幅。中国将对750亿美元的美国商品征收额外的税,对美国原油的关税为5%。今年前五个月,中国是美国原油的第九大买家。

去年,北京从一系列关税目标中删除了原油,标志着美国石油在全球市场中的重要性。现在包括它的决定显示了贸易争端的加剧,迫使它将战略商品的关税作为弹药使用。

“这是对美国原油出口的直接打击,这就是为什么你会看到这种大规模的反应,”总部位于纽约的Again Capital LLC的合伙人约翰基尔杜夫说。 “中国是一个积极的美国原油买家。”

美国顶级石油买家

随着七国集团(G7)国家的领导人准备在法国开会,央行行长聚集在怀俄明州的杰克逊霍尔(Jackson Hole),讨论包括担心全球经济放缓等问题,中国宣布了这一消息。

纽约交易的原油期货本月下跌超过7%,因为长期的贸易争端引发了对需求萎缩的担忧。美国的燃料库存也有所增加,加剧了人们对潜在供过于求的担忧。

纽约商品交易所10月交割的西德克萨斯中质原油价格下跌1.46美元至53.89美元/桶,纽约商品交易所下跌至53.40美元/桶。

经济衰退风险

ICE期货欧洲交易所10月交割的布伦特原油期货价格下跌1.01美元至58.91美元。同月其对WTI的溢价为5.02美元/桶。

根据商务部的公告,中国关税将于9月1日至12月中旬分阶段生效。美国原油的关税将在下个月开始。这反映了美国对近3000亿美元中国货物征收10%关税的时间表。

虽然美国不是中国最大的原油供应国之一,但美国的页岩热潮使其成为世界上最大的生产国之一,与沙特阿拉伯和俄罗斯一起。在石油输出国组织减产,制裁扼杀伊朗和委内瑞拉供应以及中东地缘政治紧张局势升级的时候,依赖进口的亚洲国家需要可靠的原油进口来维持经济增长。

苏黎世瑞银集团(UBS Group AG)分析师乔瓦尼•斯塔诺沃(Giovanni Staunovo)表示,“贸易紧张局势不断升级,增加了世界陷入衰退的风险”。 “这可能导致明年石油需求更低,明年石油市场供应过剩甚至更多。”