China snubs Trump on Iran in blow to US curbs

Sinopec to delay making any purchases of US oil for September amid concern over Beijing’s tariff threat on US crude

Rising trade tensions between China and the US may soon affect global oil flows. China’s largest refiner, Sinopec, will delay making any purchases of US oil for September amid concern that the Asian giant will slap tariffs on American crude, making imports more expensive, according to a person familiar with the matter.

Beijing declined to stop imports from Iran, dealing a blow to US efforts to isolate the Islamic republic, though it agreed not to increase shipments, according to officials familiar with the negotiations.

Petroleum was left off the list of products on which Beijing said Friday it plans to levy duties of 5 per cent to 25 per cent as soon as the Trump administration enacts measures. The world’s biggest oil importer took a record volume from the US in June, increasing the potential hit to American producers if China does enact tariffs.

The Trump administration has warned that even allies would face sanctions if they didn’t show “significant” progress in reducing Iranian oil purchases by November 4, ruling out broad exemptions or waivers.

The Chinese state-run firm is waiting until it is clear when or if China’s 25 per cent tariff threat on US crude imports

Petroleum was left off the list of products on which Beijing said Friday it plans to levy duties of 5 per cent to 25 per cent as soon as the Trump Administration enacts measures.

might begin, the person said. Friday’s announcement of additional tariffs on liquefied natural gas and other products comes as President Trump has directed US Trade Representative Robert Lighthizer to consider increasing proposed tariffs on $200 billion (Dh734.6 billion) in Chinese goods to 25 per cent from 10 per cent.

Sinopec had already been reducing its US oil purchases, mainly because the discount for West Texas Intermediate crude against international marker Brent had narrowed. In July, the company bought four supertankers, compared with six to seven in June.

The state-run firm didn’t purchase any US crude for August loading for similar reasons, the person said. Unipec, the trading arm of Sinopec, buys oil for the refiner.

China took 15 million barrels of US crude in June, the most in data going back to 1996, according to US Census Bureau and Energy Information Administration. Sinopec media officials in New York didn’t return a request for comment.