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Sinopec suspends oil import from U.S.

Staff Writer | August 4, 2018
Chinese Sinopec has paused importing oil from the U.S. due to escalation of trade war between the two countries, a Chinese daily reported on Saturday.
Trade war   Beijing declined to stop imports from Iran
China’s largest refiner, Sinopec, is suspending new orders of U.S. oil fearing the new tariffs on U.S. energy products that will make the crude more expensive, South China Morning Post reported citing a source close to the company.

A source close to Unipec, the trading arm of Sinopec, has told Reuters that the company has not placed order to buy oil from the US at least until October.

China in retaliation of the U.S. tariffs increase has put US energy products on a list of 25 percent tariff.

The decision is contrary to what the Chinese oil consumer had said earlier. It was expected that Unipec increase its oil imports from the US triple the amount it bought last year.

'The absence of China, the largest buyer of U.S. crude after Canada, has partly weighed on U.S. spot crude prices, making them more affordable for other buyers in Asia,' Reuters reported.

The decrease in the US oil import by China comes a few months after Washington pressed its allies to halt oil imports from Iran by November. The U.S. President Donald Trump has decided to pull out of the nuclear deal and tighten the sanctions noose on Iran economy.

Beijing, however, declined to stop imports from Iran, dealing a blow to U.S. efforts to isolate that nation, the Hong Kong-based daily said.