Supply & Demand

Trade war threatens US-China energy diplomacy

Worsening US-China trade relations could significantly reduce the competitiveness of hydrocarbons sourced from the US in the Chinese market Worsening US-China trade relations could significantly reduce the competitiveness of hydrocarbons sourced from the US in the Chinese market.
By Abhishek Kumar 18 June 2018 0 31352
Loading an LNG cargo at the Sabine Pass LNG plant in the United States Loading an LNG cargo at the Sabine Pass LNG plant in the United States. (Cheniere)

Directional impact on forecast:
Downbeat on US hydrocarbon exports to China

The much-feared trade war between the United States and China has finally come to pass. Each side has imposed tit-for-tat tariffs on imported goods from the other, and neither is prepared to back down. In light of the prevailing brinkmanship, the dispute could escalate significantly, which has the potential to adversely impact US exports of oil, coal and LNG.

On 15 June, US President Donald Trump announced the imposition of tariffs on imported...