Will U.S. Energy Sector Be Casualty Of Trade War With China?
Not really. Crude is a fungible commodity. If China buys more from SA and Russia, it only gives itself less options which usually means higher prices for them. The US oil will simply flow where the SA and Russian quantities are missing. And if Chinas economy goes into a tailspin then much less oil consumption is going to hit all producers equally. China sits on the shorter branch on this one.
It’s no secret that trade between the U.S. and China has massive implications for our economic well-being. The two largest economies in the world traded more than $630 billion worth of goods in 2017, an arrangement that served as a critical engine for global economic growth.
