Second Boeing Jet Starts Return from China, Tracker Shows

FILE PHOTO: A Boeing 737 MAX plane, intended for China's Xiamen Airlines, arrives at King County International Airport after returning from China due to ongoing tariff disputes, in Seattle, Washington, US April 19, 2025. REUTERS/Dan Catchpole/File Photo
FILE PHOTO: A Boeing 737 MAX plane, intended for China's Xiamen Airlines, arrives at King County International Airport after returning from China due to ongoing tariff disputes, in Seattle, Washington, US April 19, 2025. REUTERS/Dan Catchpole/File Photo
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Second Boeing Jet Starts Return from China, Tracker Shows

FILE PHOTO: A Boeing 737 MAX plane, intended for China's Xiamen Airlines, arrives at King County International Airport after returning from China due to ongoing tariff disputes, in Seattle, Washington, US April 19, 2025. REUTERS/Dan Catchpole/File Photo
FILE PHOTO: A Boeing 737 MAX plane, intended for China's Xiamen Airlines, arrives at King County International Airport after returning from China due to ongoing tariff disputes, in Seattle, Washington, US April 19, 2025. REUTERS/Dan Catchpole/File Photo

A second Boeing jet intended for use by a Chinese airline was heading back to the US on Monday, flight tracking data showed, in what appears to be another victim of the tit-for-tat bilateral tariffs launched by President Donald Trump in his global trade offensive.
The 737 MAX 8 landed in the US territory of Guam on Monday, after leaving Boeing's Zhoushan completion center near Shanghai, data from flight tracking website AirNav Radar showed.
Guam is one of the stops such flights make on the 5,000-mile (8,000-km) journey across the Pacific between Boeing's US production hub in Seattle and the Zhoushan completion center, where planes are ferried by Boeing for final work and delivery to a Chinese carrier.
On Sunday a 737 MAX painted with the livery for China's Xiamen Airlines made the return journey from Zhoushan and landed at Seattle's Boeing Field.
It is not clear which party made the decision for the two aircraft to return to the US.
Boeing could find a replacement buyer in Malaysia Airlines, however, which has said it was talking to the manufacturer about acquiring jets that may become available should Chinese airlines stop taking deliveries.
Trump this month raised baseline tariffs on Chinese imports to 145%. In retaliation, China has imposed a 125% tariff on US goods. A Chinese airline taking delivery of a Boeing jet could be crippled by the tariffs, given that a new 737 MAX has a market value of around $55 million, according to IBA, an aviation consultancy.
The plane flew from Seattle to Zhoushan just under a month ago.
Boeing did not immediately respond to a request for comment.
The return of the 737 MAX jets, Boeing's best-selling model, is the latest sign of disruption to new aircraft deliveries from a breakdown in the aerospace industry's decades-old duty-free status.
The tariff war and apparent U-turn over deliveries comes as Boeing has been recovering from an almost five-year import freeze on 737 MAX jets and a previous round of trade tensions.
Confusion over changing tariffs could leave many aircraft deliveries in limbo, with some airline CEOs saying they would defer delivery of planes rather than pay duties, analysts say.



Oil Climbs $1 as Price Drop Triggers Buying; Oversupply Worries Weigh

FILE PHOTO: An oil pumpjack operates near Williston, North Dakota January 23, 2015. REUTERS/Andrew Cullen/File Photo
FILE PHOTO: An oil pumpjack operates near Williston, North Dakota January 23, 2015. REUTERS/Andrew Cullen/File Photo
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Oil Climbs $1 as Price Drop Triggers Buying; Oversupply Worries Weigh

FILE PHOTO: An oil pumpjack operates near Williston, North Dakota January 23, 2015. REUTERS/Andrew Cullen/File Photo
FILE PHOTO: An oil pumpjack operates near Williston, North Dakota January 23, 2015. REUTERS/Andrew Cullen/File Photo

Oil gained more than $1 per barrel on Tuesday, rebounding on technical factors and bargain hunting after a decision by OPEC+ to boost output sent prices down the previous session, although concerns about the market surplus outlook persisted.

Brent crude futures rose $1.15 to $61.38 a barrel by 0623 GMT, the first time gain after six consecutive declines, while US West Texas Intermediate crude added $1.11 to $58.24 a barrel.

Both benchmarks had settled at their lowest since February 2021 on Monday, driven by an OPEC+ decision over the weekend to further speed up oil production hikes for a second consecutive month.

"Today’s slight rebound in oil prices appears more technical than fundamental," said Yeap Jun Rong, a market strategist at IG. "Persistent headwinds including a pivotal shift in OPEC+ production strategy, uncertain demand amid US tariff risks, and price forecast downgrades are continuing to weigh on the broader price movement."

Driven by expectations that production will exceed consumption, oil has lost over 10% in six straight sessions and dipped over 20% since April when US President Donald Trump's tariff shocks prompted increased bets on a slowdown in the global economy.

The return of Chinese market participants after a five-day public holiday since May 1 was seen supporting prices on Tuesday.

"China also reopened today, and being the largest importer, buyers would have likely jumped to secure oil at current low levels," said Priyanka Sachdeva, senior market analyst at Phillip Nova.

Also lending some support was data showing a pick-up in services sector's growth in the US, the world's major oil consumer, as orders increased.

The Institute for Supply Management (ISM) said on Monday its nonmanufacturing purchasing managers index (PMI) increased to 51.6 last month from 50.8 in March. Economists polled by Reuters had forecast the services PMI dipping to 50.2.

The US Federal Reserve will likely leave interest rates unchanged on Wednesday as tariffs roil the economic outlook.

Barclays lowered its Brent crude forecast on Monday by $4 to $70 a barrel for 2025 and set its 2026 estimate at $62 a barrel, citing "a rocky road ahead for fundamentals" amid escalating trade tensions and OPEC+'s pivot in its production strategy.

Goldman Sachs also lowered its oil price forecast on Monday by $2-3 per barrel, as they now expect another 400,000 barrels per day production increase by OPEC+ in July.