Energy Secretary Chris Wright said on Friday he believes China will become a bigger client of U.S. crude oil after the interruption of global energy supplies since U.S.-Israeli strikes on Iran
By Catholics for Catholics
China may be jockeying to become the world’s top superpower, but Beijing may also turn into a big buyer of American oil, said the U.S. Energy Secretary.
Energy Secretary Chris Wright said on Friday he believes China will become a bigger client of U.S. crude oil after the interruption of global energy supplies since U.S.-Israeli strikes on Iran, according to a story by Newsmax.
Asked in an interview with CNBC if China would increase its purchases of U.S. crude, Wright said: “I do. I do think they will. There’s huge interest in Asian buyers for more oil out of Alaska as well. You know, now our oil goes out of the Gulf of Mexico. We’ll see more of that going over to China, but in the not too distant future, we’re going to see more oil coming out of Alaska.”
China is the largest oil importer in the world and the U.S. is the biggest producer. “There’s a natural energy trade there,” Wright said.
Today, China depends greatly on the Middle East for its oil imports. Due to Iran’s blockade of the Strait of Hormuz, exports from the Persian Gulf have mostly been cut off for weeks now. However, Beijing has a huge strategic reserve that has helped it weather disruption so far.
“I suspect we’ll see a growth in their oil imports from the United States,” Wright told CNBC.
Wright believes that China and other Asian buyers will sooner or later buy more oil from Alaska as the Trump administration ramps up production there, Wright said. Still, Beijing will import more oil from the U.S. Gulf Coast, he said.
Earlier, President Donald Trump told Fox News that China had decided to purchase more oil from the U.S. Nevertheless, Beijing has not confirmed whether there is such an agreement with the U.S.
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