Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

China hits 26% of 2020 target for U.S. energy imports under trade deal

Published 11/26/2020, 04:13 AM
Updated 11/26/2020, 04:15 AM
© Reuters. Chinese and U.S. flags are set up for a signing ceremony during a visit by U.S. Secretary of Transportation Elaine Chao at China's Ministry of Transport in Beijing,

© Reuters. Chinese and U.S. flags are set up for a signing ceremony during a visit by U.S. Secretary of Transportation Elaine Chao at China's Ministry of Transport in Beijing,

BEIJING (Reuters) - China has accelerated imports of crude oil, propane and liquefied natural gas (LNG) from the United States since July, but total energy product purchases through October remain far short of targets for 2020 set out in the Phase 1 trade deal with Washington.

Over the first 10 months of 2020, China's purchases of U.S. crude oil, LNG, propane, butane and other energy products totalled $6.61 billion, about 26% of the $25.3 billion target, according to Reuters calculations based on Chinese customs data.

While the gap to the target is unlikely to be bridged by year-end, U.S. and Chinese trade officials reaffirmed their commitment to the deal in August, and China's imports of U.S. energy products have increased sharply the second half of the year.

The $6.61 billion accrued through October marks a five-fold jump from the $1.29 billion amassed by end-June.

(GRAPHIC - China's key energy products imports from the U.S.: https://tmsnrt.rs/2V2riJd)

Imports of propane, a key component of liquefied petroleum gas (LPG) used as fuel for cars, heating and to produce petrochemicals, grew at the fastest pace of all major energy products since July.

Robust demand for chemicals from China's revitalised manufacturing sector, along with new processing units at independent refiners Zhejiang Petroleum & Chemical and Zhejiang Huahong have fuelled the import drive.

LNG demand is also expected to be firm through winter as Beijing continues to replace coal with gas and as the country liberalizes its pipeline network.

Refinitiv trade flows data show China may receive a record 1.26 million cubics metres of U.S. LNG in November.

China's crude oil imports from the U.S. hit a record 12.5 million tonnes through October, worth $3.88 billion, but the pace of U.S. purchases is expected to slow through the remainder of 2020 as top suppliers Saudi Arabia and Russia target increased flows to the top oil importer.

© Reuters. Chinese and U.S. flags are set up for a signing ceremony during a visit by U.S. Secretary of Transportation Elaine Chao at China's Ministry of Transport in Beijing,

(GRAPHIC - China's crude oil imports from the U.S.: https://graphics.reuters.com/CHINA-US/CRUDEOIL/nmopadzdxva/chart.png)

Latest comments

Should help NG demand prices ahead
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.