Chinese Private Refiner Buys U.S. Crude After Beijing Allows Tariff Waivers

OILMONSTER.COM- A Chinese independent refinery has bought U.S. Mars crude for delivery in May, a sign that American crude exports to the world’s largest oil importer could pick up after the two countries closed a trade deal at the start of the year.

China has pledged to buy at least $52.4 billion worth of U.S. energy products over the next two years. That commitment can only be met through substantial increases in crude imports from the United States, the top global oil producer, according to traders and analysts.

Beijing started granting tariff exemptions on U.S. goods from early March, while the U.S.-to-Asia arbitrage window has opened after freight rates dropped.

This week, Panjin Haoye Chemical Co bought Mars crude from PetroChina , three sources with knowledge of the matter said.

“Without the import tax waiver the trade would have been impossible,” said one of the sources, adding that PetroChina is still marketing the rest of its 2-million-barrel Mars crude shipment.

Calls to Panjin Haoye went unanswered. PetroChina did not immediately respond to a request seeking comment.

Courtesy: www.reuters.com