U.S. Oil Exporters Turn To India As China Tensions Mount

Escalating trade tensions between China and the U.S could be a boon to Indian refineries.

China has threatened to levy import tariffs on U.S. crude in the wake of Donald Trump’s imposition of tariffs on a wide range of goods and services. American energy exporters, as a result, may need to find new markets.

India, with its rapidly growing economy, is seen by many analysts as a compelling alternative.

China’s move effectively reduces demand for American oil, so India’s refiners may see a windfall in terms of lower prices. “If China imposes tariffs, their refineries won’t buy US crude since it would cost more,” Sandy Felden, Morningstar’s commodities research director, told The Times of India.


On Friday, the Trump administration announced tariffs on $34 billion worth of Chinese goods. China responded swiftly with retaliatory measures of its own.

 

 

 

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