China Could Target US Oil Next in Trade War

China is expected to dramatically reduce its intake of U.S. crude imports over the coming weeks, energy analysts have warned, following the latest flare-up in trade war tensions between the world’s two largest economies.

The tit-for-tat tariff dispute between the U.S. and China has already sent oil prices plunging, in large part because of worries about a severe global economic slowdown and potentially even a U.S. recession.


West Texas Intermediate graph

Wednesday’s session saw crude drop at one stage to a seven-month low.

President Donald Trump raised the stakes in his administration’s protracted dispute with Beijing last week, threatening to impose new charges against the country from September 1.

The U.S. has since accused China of being a currency manipulator, as the yuan sank to levels against the dollar not seen in more than a decade.

In response, energy analysts expect China to target U.S. oil imports.

Via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza