Trump administration urged to pressure China on promise to buy US$52 billion worth of US energy products
- Producers warn administration that China is falling behind in its commitment while increasing purchases of Russian and Saudi crude
- Crude oil prices had an unprecedented fall into the negative territory because of depressed demand from the pandemic
China needs to follow through on its promise to purchase US$52.4 billion in US energy over the next two years, as it is falling behind in its pledge as part of the phase one trade agreement in January, according to a US trade association.
In the midst of a historic collapse in crude oil prices as demand evaporates due to the Covid-19 pandemic, the American Exploration and Production Council, in a letter on Tuesday, urged the Trump administration to pressure China to act on its promised energy purchases.
“China has only purchased a de minimis amount of US crude in the first months of 2020, while it has increased purchases of crude oil from Saudi Arabia and Russia,” the council’s chief executive Anne Bradbury said.
The council, which represents 25 of the largest independent oil and natural gas exploration and production companies in the US including Apache and Chesapeake Energy, addressed the letter to US Trade Representative Robert Lighthizer.
“Rather than increasing imports from countries like Russia and Saudi Arabia, the Chinese government must take the necessary steps to remain in good standing with the US as a trusted trade partner,” Bradbury said.
