CHINA has threatened to impose tariffs on US energy products such as natural gas and crude oil as fears of an international trade war intensified after Donald Trump announced tariffs on more than $50billion (£37.68billion) worth of Chinese goods coming into the US.
CHINA didn’t wanted a Trade War but this time on Friday, China confirmed they would be arranging tariffs. The tariffs, expected to be on US energy products could crash the US energy and fossil fuel markets.
China is currently the world’s biggest buyer of US oil.They import an estimated 363,000 barrels of American crude oil every day. They also take in about 200,000 barrels of other petroleum products each day including propane.
The US has been encouraging countries to buy oil for them, rather than Iran, and is currently exporting a record two million barrels of crude every single day. China is also the world’s largest importer of Iranian oil. In the first quarter of 2018, they were purchasing around 650,000 barrels each day from the country.
Escalation of trade tension is likely to impact the near term market sentiments. Market will closely follow OPEC and Russia meeting this week, to decide on relaxation of supply cuts.
Trump is being criticized from all corners, including many in his own party, but for now he is moving forward with an aggressive trade approach.
Investment & trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance.
CapitalStars Investment Adviser: SEBI Registration Number: INA000001647
Our Some Best Services Read it Here…