Natural Gas News – June 30, 2020
China’s record U.S. crude imports in July underscores trade deal failure
A record amount of crude oil is heading from the United States to China next month, but rather than signaling that the trade deal between the two countries is working, it serves to underscore just how far Beijing is from meeting its commitments. A total of 31.02 million barrels of crude on 26 vessels is due to arrive in China from the United States in July, according to vessel-tracking and port data compiled by Refinitiv. This equates to about 1 million barrels per day and is more than double the previous best month of 466,000 bpd in June 2018. In the first six months of 2020, China imported just 5.55 million barrels of U.S. crude, or about 41,500 bpd. The paltry volumes of crude imports was despite the January “Phase 1” trade agreement between Beijing and the administration of President Donald Trump. In terms of the deal, China was to massively increase its imports of U.S. crude, coal and liquefied natural gas (LNG) by $52.4 billion over 2020 and 2021 from a base of $9.1 billion in 2017.For more on this story
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Summer outlook for US LNG exports dims as cancellations mount
The summer outlook for U.S. LNG exports is becoming bleaker despite a modest improvement in the economics of shipping cargoes. More than 40 U.S. LNG cargos for August loading were canceled by buyers, Poten & Partners said in a June 24 outlook. The shipbroker had counted similar levels of cancellations for July, which followed dozens of cargo cancellations for June. All of the major U.S. terminals, concentrated on the Gulf of Mexico, saw significant cancellations. The August shut-ins accounted for about half or more of U.S. export capacity. “That’s a very significant impact on U.S. exports,” said Jason Feer, head of business intelligence at Poten & Partners. For more on this story visit spgglobal.com or https://bit.ly/2ZfJWyO
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