US exports crude oil to China
America is exporting to China for the first time in eight years, with big implications for bilateral relations and the global market
The US has started exporting crude oil to China for the first time since 2005, which analysts say gives Washington additional leverage in Sino-US relations and has major implications for the global oil market.
In January, the US exported 9,000 barrels of crude per day to China, the highest in at least 13 years, according to the US Energy Information Administration (EIA).
China's reliance on oil will increase unless it can find different energy sources. With its own oil production rising, the US can cut down on oil imports
"China will increase its oil imports in the coming years," said Adrian Loh, an analyst at Daiwa Capital Markets in Singapore.
"If US oil exports to China increase, the impact on Sino-US relations will be felt," said Li Xin, an analyst at Masterlink Securities in Shanghai.
"For China, the room for ramping up oil production is limited. China's reliance on oil will increase unless it can find different energy sources. With its own oil production rising, the US can cut down on oil imports," said Lawrence Lau, an analyst at Bank of China.
Later this year, US crude oil production will surpass its oil imports for the first time since February 1995, the EIA predicts. The average US energy use per person will drop from 312 million British thermal units (Btu) in 2011 to below 270 million Btu in 2034, a level not seen since 1963.