Sinopec plans to lift U.S. crude imports to a record high.
Sinopec, Asia's largest refiner, plans to lift U.S. crude oil imports to record levels in January, Reuters quoted two people familiar with the matter as saying.In a joint statement, China announced that it would expand imports of U.S. agricultural and energy products.
Sinopec, a trading company, has bought 16 million barrels of U.S. crude in June, the equivalent of 533,000 b/d, the company's largest monthly purchase, sources said.
"The government has encouraged us to increase us crude imports," one of the sources told Reuters.
On the afternoon of May 19, the United States and China issued a joint statement on bilateral economic and trade consultations.
The statement said the two sides agreed to take effective measures to substantially reduce the U.S. trade deficit with China. China will increase its purchases of goods and services from the United States and increase imports of agricultural products and energy.
Because China is one of the important determinants of Saudi market share, if improve sino-us trade relations, increase crude oil imports from the United States, China will rise sharply Saudi production cost (that is, the more market share).Once that happens, it is likely to force OPEC to put an early end to the deal, which is hard to sustain.Judging from the sino-us joint statement, the probability of the latter is significantly higher.