China blindsides US with new energy tariffs threat


Didn’t See That Coming: China Threat of New Crude Oil Tariff a Surprise in US

… from Sputnik News, Moscow

Could Iran cash in by replacing reduced US oil supplies to China?

[ Editor’s Note: China has found a soft spot for counter tariffs that could get Trump’s attention. This could push more of China’s oil purchases toward Iran.

Reports this weekend showed Iran is floating $6 billion in domestic bonds to make sure it can maintain needed investments to keep expanding its oil production to another 500,000 barrels a day.

The US Treasury might not have anticipated this move; and this reminds us of the old adage, “Be careful what you ask for, because you might just get it.”

Russia and Saudi Arabia are working closely to stabilize prices, but India is saying that current price levels drag on their needed growth.

Where the new sweet spot is for producers and consumers to find a comfortable balance is anyone’s guess. A major war conflict, especially in the Mid East, could start the price roller-coaster going once again.

This will be a memorable “Year of the Sanctions Wars”, where everybody could lose, if it slows growth worldwideJim W. Dean ]

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Sanctions-roulette wars begin in earnest for 2018

– First published – June 17, 2018

Just as China topped the list of nations buying US oil, Beijing – retaliating to unilateral Trump economic threats – sent jitters through energy markets on Friday by threatening new tariffs on natural gas, crude oil and many other energy products.

On Friday, Beijing threatened to impose tariffs on US energy products in response to $50 billion in tariffs imposed by US President Donald Trump. Such tariffs would inhibit Chinese refiners from buying US crude imports, potentially crashing US energy markets and hitting the fossil fuel industry where it hurts the most: in shareholder approval.

“This is a big deal. China is essentially the largest customer for US crude now, and so for crude it’s an issue, let alone when you involve [refined] products, too. This is obviously a big development,” Matt Smith, director of commodity research at ClipperData, told Reuters.

According to US Energy Department figures, China imports approximately 363,000 barrels of US crude oil daily. The country also imports about 200,000 barrels a day of other petroleum products including propane.

The US energy industry has seen its profits boosted by fracking in domestic shale fields, which produce some 10.9 million barrels of oil per day.

The US is also exporting a record 2 million barrels per day, and encouraging countries like China to import more US energy products instead of those from Iran, after Trump recently withdrew from the historic Joint Comprehensive Plan of Action (JCPOA) 2015 nuclear arms deal with Tehran.

China is currently the largest buyer of Iranian oil as well, purchasing some 650,000 barrels daily during the first quarter of 2018.

According to Bernadette Johnson with the Denver, Colorado, energy consultancy Drilling info, tariffs will increase prices for other petroleum products including propane and liquefied natural gas.

“The constant back-and-forth about the tariffs creates a lot of market uncertainty that makes it harder to sell cargoes or sign long-term [trade] deals,” Johnson noted, cited by Reuters.

In late March, the White House slapped trade sanctions on China, the world’s second largest economy, including limitations in the investment sector as well as tariffs on $60 billion worth of products.

Citing “fairness” considerations, Trump referred to the car market, stating that China charged a tariff ten times higher on US cars than the US did on the few Chinese cars sold in the US.

Separately, in a bid to deliver on campaign promises, Trump announced his intention to impose a 25-percent tariff on steel imports and a 10-percent tariff on aluminum imports from an array of US allies, including the EU, Mexico and Canada. Those nations — longtime allies to the US — have promised retaliatory economic measures.

Trump has also reportedly mulled placing a 25-percent import tax on European cars, something that would significantly affect the highly-profitable US market for expensive German automobiles.

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  1. Oh PLUEZE . . . These events are always planned well in advance, and Humpty Trumpty is just the sock puppet du jour. Yeah, give the man a Putz Puller award . . . he and Steven MyNewChin deserve it.
    The U.S. Treasury didn’t expect it?
    Pop Quiz Time: Who is Secretary of the U.S. Treasury?
    Why it’s Steven MyNewChin.

    Are our collective memories suffering with short term memory loss?

    A lack of oxygen can affect short term memory. Hmmmmmmm . . . if I didn’t sound like a tin foil hat man, I’d say . . . where is our AIR SUPPLY?!? And the band was formed when they met doing the Andrew Lloyd Webbert classic “Jesus Christ Super Star.” Oh, the irony is not lost on me.

    Steven MyNewChin . . . made BANK when they toppled the housing market . . . 10 years ago. Gasp, gasp.

    Ten years ago, MyNewChin was kicking old ladies out of their homes when they didn’t understand the complexities of the REVERSE MORTGAGE, a Three Card Monty house o’ card game that was CALCULATED to have the house win . . . by foreclosing on seniors.

    One old lady in California, two old ladies in California . . . 20,000 old ladies in California. As the COUNT, because our current U.S. Secretary of the Treasury was blood sucking senior dry. And that’s just the count in California. He bought a company that did reverse mortgages, and KNEW they’d belly up. And could not wait until the mortgage lender was circling the drain, then the Vampire Count swooped in.

    This is America!

    Vulture Capitalism.

    • No one remembers that?

      These things are CALCULATIONS . . . the ancient money magick of the Babylonian/Talmudist/Khazarian/Bolshevik/Zionists.

      MyNewChin made BANK . . . on kicking out seniors in the reserve mortgage loans.

      No one remembers?!?!?

      “Is there anyone out there ’cause it’s getting harder and harder to breathe ”

      Who the fvck is standing on my oxygen?!?!?!

      And while the nation — JUST 10 YEARS AGO — was drowning in under-water mortgages, ’cause what other fvck face was making BANK! Michael, the archangel, Jerkoff . . . Sec. of Homeland Security. Another Zionist bootlicker, goose stepper of the AskeNAZI bitch regime. Chertoff Capital . . . a HEDGE FUND management company.

      Does anyone know what a HEDGE FUND does?!?!?

      They “hedge” their bets. So while the MBS market collapsed, they were hedging and hawing . . . and made BANK.

      Rule #1 when dealing with these people . . . they play both ends against the middle. Always.
      Rule #2 when dealing with these people . . . they WANT markets to tank . . . it does not matter how. Tank the economy. Send in tanks to blow shit up.
      Rule #3 when dealing with these people . . . they run sims all day. The crunch numbers ’til the Ba’al cows come home. They’re already “anticipating” these moves . . . and dim sum.

      The price of rice . . . err, I mean surprise, surprise.

      We all grovel in the 20/20 hindsight. But when it’s plan in our faces . . . we can’t see the forest for the trees!

    • This is how they did it — ten years ago:

      And finally, we have it going on smoothly . . . but that’s not enough. The Babylonian/Talmudist/Khazar/Bolsheviks/Zionist . . . want to THINK TANK it down the toilet . . . again!

      And keep in mind kids, MyNewChin . . . made BANK on these MBS . . . and pawned it off on the US, and the world . . . as too big to fail.

      Raise the tariffs, break treaties with Iran, move the U.S. embassy to Jewusalem, put MyNewChin as Secretary of the Treasury, get Bolt off Bolt on to set up NK talks, keep obfuscating justice . . . HEY . . .

      Let’s get Donny to do it.
      He fvcks anything!

  2. I see this as a good thing. Once China stops buying U.S. oil, the market becomes flooded ( pun intended) with oil and the prices drop. Up here in Northern Michigan gas prices are $3.10/gal or higher. Fracking is a joke albeit an expensive joke so when the price of crude drops below $53.00/barrel, frackers go belly up.
    Americans though are stupid anyway; no matter how high the price of gas they will drive hundreds of miles for their little Memorial Day getaway and then it’s back to the suburban ghetto on Monday.
    tRump has opened a can of worms with unintended consequences. He hasn’t the brain power to conceptualize the ramifications of his actions, either that or he just doesn’t give a damn.

    • Funny how frackers — the ENEMA Mother Earth never asked for, OR needed — are in the comments.
      Yeah, nothing like “fracking” natural shale using hydraulics and chemicals. Nothing could go wrong there.

    • Just ask some towns in Pennsylvania how well fracking went. Their water supplies are now so toxic they cannot be used. The entire underground aquifer is in danger of being made unusable because of fracking.
      Fracking is one of the most environmentally destructive operations yet devised by greedy, unprincipled people.

    • Khalid, Not really. A year or so ago the price of crude dropped below $30/barrel. Fracking companies closed shop because they could no longer acquire investors as the cost of fracking requires crude to be at least$53/barrel. In Texas alone, over 135,000 jobs were lost but there were still plenty of other related jobs and of course unemployment checks.
      The nation does not depend on fracking. It is a small blip and for all purposes way too expensive to continue with.

  3. Evidently Israel lover liar con artist bully draft dodger Trump is so arrogant and stupid he does not even understand that two or more can play the trade war game.

  4. LS…

    So Gas Monkey Garage will have to work with Mercedes second hand cars to serve the market and avoid import taxes etc. If they like it or not ! But Zio Richard Roling is a smart ass and could not care less after all…

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