Crude oil prices sank after each round of tariffs, and while there are real concerns about the ripple effects on demand and global economic growth, it is unclear whether or not the oil and gas relationship will be directly targeted in a major way.
China needs the energy, and oil and gas exports have succeeded in cutting the U.S. trade deficit, a particularly concerning metric for the Trump administration.
Some analysts think U.S. oil and gas exports to China are too important for both countries. But not everyone agrees. “China can ditch American energy at any time because there’s plenty of supplies elsewhere, whereas for the U.S., energy is a sensitive subject,” Will Yun, a commodities analyst at Hyundai Futures Corp. told Blomberg. “If China shows its willingness to impose tariffs on crude, it will send a shock wave through markets,” said Min Byungkyu, a global strategist at Yuanta Securities Co.