By Henning Gloystein
SINGAPORE (Reuters) – The price of oil staggered on Friday in a nervous market as the United States imposed a series of tariffs on Chinese oil Implements goods, which should cause Beijing to retaliate Crude oil imports
Oil prices fell early on Friday together with the stock markets. However, at 0528 GMT, futures on US West Texas Intermediates (WTI) rose 13 cents or 0.2 percent from their last settlement at $ 73.07 [1
The trade dispute between the United States and China, the world, is above the oil markets Two of the largest economies
Washington imposed tariffs on Chinese goods at 12:01 am Washington DC (0401 GMT) on Friday ,
China has said that it will take revenge, and major Chinese ports have already delayed the settlement of goods from the United States, according to several sources
"We are on an unprecedented trade dispute between the world's largest economies", said Stephen Innes, Asia Pacific Trading Director for Brokerage OANDA.
As part of the retaliatory reaction, Beijing has threatened to impose a 25 percent tariff on US crude oil imports, even though it has not specified an introductory date.
American crude oil supplies to China are about 400,000 barrels a day (bpd), worth 1 billion a month at current prices.
Tariffs US oil companies would not be competitive in China.
A manager of the Chinese Dongming Petrochemical Group said he expects Beijing to soon raise tariffs on US oil imports.
He added that his refinery had canceled US crude oil orders and was moving to the Middle East or West African deliveries.
RATES, SANCTIONS & DISRUPTIONS
The potential trade war between the United States and China is in the midst of a strained oil market.
Energy Advisory FGE on Friday issued a warning about emerging supply shortages due to US sanctions on Iran and disruptions elsewhere.
"Iran's exports amount to 2.7 million barrels a day, including condensate."
Even if the US government grants exemptions to some allies, FGE's estimated 1.7 to 2 million barrels of crude oil and condensate would be removed from the markets following the implementation of sanctions.
US Investment Bank Jefferies said Friday it expects "a drop in Iran's exports of well over 1 million bpd" due to US sanctions.
Some are already responding. South Korea, a major buyer of Iranian oil and condensate, will no longer raise Iranian oil in July for the first time since August 2012, three sources familiar with the matter said on Friday.
Iran Will Be Cut Off by Oil Trade
"Venezuela … will lose another 400,000 bpd by the end of the year, with production going below 1 million bpd," said FGE, adding another 300,000 bpd of Libyan capacity be destroyed.
Although Saudi Arabia and Russia said they would increase production to compensate for disruption, FGE said "there simply is not enough capacity to outweigh Iran's crude oil losses, plus Venezuela and Libya," warning of the possibility of oil price hikes 100 USD per barrel.
For a chart of US oil prices versus international oil prices, click https://reut.rs/2KL7XoZ
For a graph on the global supply and demand balance for crude oil, click https: // reut .rs / 2IYnqAb
(report by Henning Gloystein in SINGAPORE, additional coverage by Meng M in BEIJING, edited by Richard Pullin and Christian Schmollinger)