China avoided purchasing US crude for the third straight month – the longest stretch since 2018 – delivering a fresh blow to shale drillers already facing lower oil prices.
The world’s biggest oil importer bought no American crude in May, according to US Census data released Thursday, following zero purchases in both March and April as a trade dispute between the largest global economies roiled markets. The absence of Chinese buying sent US overseas oil sales tumbling to the lowest in two years.
China’s shift away from US crude is bad news for shale drillers, which partly depend on foreign demand to keep drilling and avoid US markets from becoming oversupplied. Those producers already were grappling with benchmark West Texas Intermediate prices that have recently pulled back below $70 a barrel as geopolitical tensions ease and OPEC+ considers bringing back more production.
As part of the US’s broader strategy to address trade imbalances, the Trump administration imposed tariffs on several countries, including China. Chinese goods currently face levies of roughly 55 percent. While the dispute has eased recently, it remains overall unresolved.
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