Crude oil prices follow global equities lower after China said it would impose tariffs on various U.S. goods, raising the potential for a trade war that could hurt global growth: U.S. WTI -1.5% at $62.55/bbl, Brent -1.3% at $67.22/bbl.
“It’s all about the macro picture right now,” said Harry Tchilinguirian, global head of commodity markets strategy at BNP Paribas (PA:BNPP). “There’s a sea of red on the equity screens, and oil, as a risk asset, is falling as well.”
The oil price drop comes even as the American Petroleum Institute said yesterday that U.S. crude inventories fell by 3.3M barrels last week.
An added concern: The net long position in futures and options on Brent crude tops 600M barrels, according to ICE data, meaning that in the event of a sharper drop in price, sellers may find few buyers.
Oil Price - April 4
Oil Price - April 4
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Oil Price - April 4
Oil price dip is all about the FEAR of a "Trade War".
Trump seeks high tariffs on China's energy products. E&E News.
The Trump administration yesterday issued a long list of China's products that could be subject to high tariffs, including wind generators, nuclear reactors and batteries. They are among more than a thousand items that the White House believes approximates $60 billion in Chinese imports and span a wide range of industries, from biotech to agriculture to heavy manufacturing. Trump's declaration makes it more likely that the American energy industries and their customers will be swept up in the escalating trade war between China and the U.S., the world's two largest economies whose trade relationship is deeply intertwined. The announcement, which was made late in the day without advance notice, caught the energy industry flat-footed. Most trade organizations had no immediate comment.
China retaliates, slaps duties on U.S. soybeans, planes, chemicals; markets skid. Reuters.
China hit back quickly on Wednesday against the Trump administration’s plans to slap tariffs on $50 billion in Chinese goods, retaliating with a list of similar duties on key U.S. imports including soybeans, planes, cars, beef and chemicals. The speed with which the trade struggle between Washington and Beijing is ratcheting up – China took less than 11 hours to respond with its own measures – led to a sharp selloff in global stock markets and commodities.
Here’s what the Trump-China trade negotiations could mean for Alaska’s gas pipeline. Anchorage Daily News.
While much of the United States is contemplating a trade war with China, Alaska is banking on making the nation a closer trading partner — one day, a major buyer of liquefied natural gas. President Donald Trump has threatened to impose tariffs on up to $60 billion in Chinese goods in an effort to rectify the trade deficit with China. In 2017, the U.S. had a $375 billion trade deficit with China, importing more than it exports to the country. But Alaska is barreling forward with its long-held pipe dream: building a pipeline to bring natural gas down from the North Slope and exporting it to Asia, offering the state a fresh chance at a booming natural resource economy. Project leaders and some analysts say that even if Trump's trade talk escalates to an all-out trade war with China, Alaska's LNG exports are unlikely to be caught in the crossfire.
China Looks To Double Its LNG Terminals. The Oil Price.
China’s seemingly endless thirst for natural gas is on a collision course with not only U.S.-based liquefied natural gas (LNG) project developments, but others as well, including Russia and Australia, in a move that is revolutionizing global markets for the super-cooled fuel. Per China’s government mandate to replace coal-based power generation with natural gas, the cleaner burning fuel is set to make up at least 10 percent of the country’s energy mix by 2020, with further earmarks after that. Not only is China’s pivot away from coal to natural gas changing natural gas market dynamics, both piped gas and LNG, it is also causing a knee jerk response among the country’s state-owned oil majors.
Trump seeks high tariffs on China's energy products. E&E News.
The Trump administration yesterday issued a long list of China's products that could be subject to high tariffs, including wind generators, nuclear reactors and batteries. They are among more than a thousand items that the White House believes approximates $60 billion in Chinese imports and span a wide range of industries, from biotech to agriculture to heavy manufacturing. Trump's declaration makes it more likely that the American energy industries and their customers will be swept up in the escalating trade war between China and the U.S., the world's two largest economies whose trade relationship is deeply intertwined. The announcement, which was made late in the day without advance notice, caught the energy industry flat-footed. Most trade organizations had no immediate comment.
China retaliates, slaps duties on U.S. soybeans, planes, chemicals; markets skid. Reuters.
China hit back quickly on Wednesday against the Trump administration’s plans to slap tariffs on $50 billion in Chinese goods, retaliating with a list of similar duties on key U.S. imports including soybeans, planes, cars, beef and chemicals. The speed with which the trade struggle between Washington and Beijing is ratcheting up – China took less than 11 hours to respond with its own measures – led to a sharp selloff in global stock markets and commodities.
Here’s what the Trump-China trade negotiations could mean for Alaska’s gas pipeline. Anchorage Daily News.
While much of the United States is contemplating a trade war with China, Alaska is banking on making the nation a closer trading partner — one day, a major buyer of liquefied natural gas. President Donald Trump has threatened to impose tariffs on up to $60 billion in Chinese goods in an effort to rectify the trade deficit with China. In 2017, the U.S. had a $375 billion trade deficit with China, importing more than it exports to the country. But Alaska is barreling forward with its long-held pipe dream: building a pipeline to bring natural gas down from the North Slope and exporting it to Asia, offering the state a fresh chance at a booming natural resource economy. Project leaders and some analysts say that even if Trump's trade talk escalates to an all-out trade war with China, Alaska's LNG exports are unlikely to be caught in the crossfire.
China Looks To Double Its LNG Terminals. The Oil Price.
China’s seemingly endless thirst for natural gas is on a collision course with not only U.S.-based liquefied natural gas (LNG) project developments, but others as well, including Russia and Australia, in a move that is revolutionizing global markets for the super-cooled fuel. Per China’s government mandate to replace coal-based power generation with natural gas, the cleaner burning fuel is set to make up at least 10 percent of the country’s energy mix by 2020, with further earmarks after that. Not only is China’s pivot away from coal to natural gas changing natural gas market dynamics, both piped gas and LNG, it is also causing a knee jerk response among the country’s state-owned oil majors.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Oil Price - April 4
A Saudi oil tanker was targeted by the Iran-aligned Houthi movement on Tuesday afternoon local time off Yemen’s port of Hodeidah, sustaining minor damages and completing its course north, Saudi-owned Al Arabiya reported, citing the Arab coalition that is fighting the Houthis in Yemen.
One of the Saudi oil tankers was attacked west of Hodeidah, a port currently under Houthi control, Turki al-Maliki, spokesman for the Saudi-led Arab coalition told Al Arabiya.
The attack was thwarted after one of the Arab coalition’s ships intercepted the attempt. Sustaining minor damage, the oil tanker completed its course accompanied by the coalition ship, Al Arabiya reports.
According to the Arab coalition, the port of Hodeidah is still being used as a launch pad for “terrorist operations” as well as missiles and weapons smuggling.
The Houthi Shiite rebel group is aligned with Iran and has been fighting a Saudi-led coalition in Yemen since 2015.
More details: https://oilprice.com/Energy/Energy-Gene ... anker.html
One of the Saudi oil tankers was attacked west of Hodeidah, a port currently under Houthi control, Turki al-Maliki, spokesman for the Saudi-led Arab coalition told Al Arabiya.
The attack was thwarted after one of the Arab coalition’s ships intercepted the attempt. Sustaining minor damage, the oil tanker completed its course accompanied by the coalition ship, Al Arabiya reports.
According to the Arab coalition, the port of Hodeidah is still being used as a launch pad for “terrorist operations” as well as missiles and weapons smuggling.
The Houthi Shiite rebel group is aligned with Iran and has been fighting a Saudi-led coalition in Yemen since 2015.
More details: https://oilprice.com/Energy/Energy-Gene ... anker.html
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group