Supply Chain Research

Chinese oil buyers including Petrochina and Sinopec may cut their crude oil purchases from the U.S. as part of a series of non-tariff actions being taken by the government against forthcoming American tariff extensions. That may prove to be a for them challenge given surging Chinese crude oil demand, with imports that rose 13.9% year over year in July after a 9.5% rise in 2Q. The impact on U.S. oil exporters may be minimal. Shipments to China from the U.S. already fell 49.2% year over year in 2Q and represented just 6.8% of the total in 2Q.