According to Bloomberg, China has refrained from purchasing American crude oil for three consecutive months. This marks the longest period without Chinese energy purchases from the US since 2018. These developments have become an additional pressure factor for oil producers following the recent decline in resource prices.
Additionally, yesterday's US Census Bureau data indicates that the current changes stem from trade tensions between the world's two largest economies. These tensions have caused the ongoing market disruptions. As a result, China's abandonment of oil purchases has reduced US export levels to their lowest in the past two years.
One consequence of the current crisis in the oil industry has been price volatility for the American WTI crude. Prices for this fuel recently fell below the $70 per barrel threshold. The primary reasons for this decline include easing geopolitical tensions and OPEC+'s potential production increase.