China is expected to dramatically reduce its intake of U.S. crude imports over the coming weeks, energy analysts have warned, following the latest flare-up in trade war tensions between the world’s two largest economies.
The tit-for-tat tariff dispute between the U.S. and China has already sent oil prices plunging, in large part because of worries about a severe global economic slowdown and potentially even a U.S. recession.
Wednesday’s session saw crude drop at one stage to a seven-month low.
President Donald Trump raised the stakes in his administration’s protracted dispute with Beijing last week, threatening to impose new charges against the country from September 1.
The U.S. has since accused China of being a currency manipulator, as the yuan sank to levels against the dollar not seen in more than a decade.
In response, energy analysts expect China to target U.S. oil imports.
