China did not purchase a single barrel of American oil in May, according to a report from the US Bureau of Statistics. The world’s largest oil importer has not purchased oil from American companies for the third month in a row.
The lack of purchases by China has brought the volume of American oil exports to the lowest level since January 2023. At the same time, oil supplies from the United States are not vital for China. According to the analytical company Vortexa, they accounted for only 1% of China’s total imports in the first months of the year.
As Bloomberg notes, the end of purchases by China is bad news for American companies producing oil on the shelf. They are primarily focused on exports, and drilling is feasible on average when the price of WTI oil is not lower than $61 per barrel. At the same time, at some sites, production is economically viable at prices above $70, according to a recent study by the Federal Reserve Bank of Dallas. WTI futures are currently trading at $67 per barrel.
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