Bloomberg reported on July 3 local time that China has not purchased any US crude oil for three consecutive months - the longest record since 2018. This is another new blow to US shale oil producers, who are already under pressure from falling oil prices.
According to official US government survey data released on Thursday, China, the world's largest crude oil importer, did not purchase any US crude oil in May, consistent with the situation in March and April. The trade dispute between the two largest economies has also impacted the market. The absence of Chinese buyers has caused a sharp drop in US overseas crude oil sales to the lowest level in two years.
The shift of China to reduce purchasing US crude oil is bad news for US shale oil producers, as these producers rely to some extent on exporting oil abroad to maintain their operations and avoid an oversupply of crude oil in the US domestic market. To make matters worse, these producers also face the pressure of West Texas Intermediate (WTI) oil prices falling below $70 per barrel, as well as OPEC considering to resume part of its crude oil production due to easing geopolitical tensions.
Crude oil export line chart by Bloomberg
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