Oil Daily | China Imposes Tariff on U.S. Crude as Trade Tensions Rise, Impacting Global Oil Markets

【Oil-Producing Countries Dynamics】

China retaliated against U.S. tariffs by imposing a 10% levy on U.S. crude oil imports and placing limits on critical mineral exports to safeguard national security. The trade conflict is escalating, with further measures likely, affecting global trade flows and energy markets.

Pakistani Prime Minister's office announced a one-year deferred payment agreement with the Saudi Fund for Development for $1.2 billion worth of oil imports. This aims to strengthen Pakistan's economic resilience amid a deep economic crisis marked by high inflation, debt, and low foreign exchange reserves.

U.S. officials reported increased Ukrainian drone attacks on Russian energy infrastructure, including Lukoil's refinery and a Gazprom gas plant. This strategy has frequently targeted Russian refineries, affecting fuel supply and processing rates.

Despite U.S. pressure, OPEC maintains its plan to gradually unwind production cuts starting April 2025. The Joint Ministerial Monitoring Committee stressed adherence to cuts as the group navigates recent market turbulence and geopolitical tensions.

South Africa continues to prioritize coal in its energy mix despite environmental and health challenges. The government seeks to balance coal dependency with renewable energy expansion and financial support for its Just Transition plan.

【Company News】

South Korean officials reported that Act-Geo, a U.S. geoscience exploration firm, discovered additional oil and gas prospects in the East Sea. These findings could potentially hold between 680 million and 5.17 billion barrels of oil and gas equivalent, promising significant future energy resources for the country.

【Others】

President Trump's tariff negotiations with Canada and Mexico resulted in a temporary pause. Both countries committed to enhancing border controls. However, Trump's tariffs on Chinese imports remain, impacting U.S.-China relations and trade dynamics.