China unlikely to resume US energy purchases despite trade truce — Reuters

Markets welcomed the US and China’s decision to pause tariffs for 90 days and negotiate. However, the move is unlikely to convince Beijing to resume buying US energy commodities, according to Reuters.

The news agency suggests US importers will likely boost purchases of Chinese manufactured goods in the next 90 days while the 30% tariffs are on hold. However, China appears unlikely to resume imports of American crude. Such shipments have basically stopped since the duties hit. Kpler data shows that not a single US oil tanker is scheduled to reach China in May, compared to just three in April.

The downturn extends to other energy commodities as well. China has completely halted imports of US LNG since February, while dramatically cutting coal purchases. Though the US previously accounted for approximately 5.5% of China's LNG imports and 2.5% of its coal imports, Beijing appears capable of securing alternative supplies from other markets. Reuters notes that Australian metallurgical coal could serve as an alternative but at higher prices.