New York (Reuters) – Many American oil refiners are largely relied on by imported raw oil because their objects are configured to run harder grades, such as those coming from Mexico and Canada.
Refiners are waiting for clarity and prepare for the threats of US President Donald Trump to import raw oil from Canada and Mexico.
Trump said on Friday that he would reduce the threats of tariffs to Canadian oil to 10% and that oil and gas tariffs were likely to take effect on February 18th.
Oil imports could increase the costs of raw oil, pushing refineries to reduce the amount of oil that their object procedure. Refinery in the Middle Western process of about 70% of 4 million barrels per day (BPD) oil imported from Canada.
The Phillips 66 said that in the US Middle West and the Rocky Mountain region, there could be a decrease in production, where alternative raw supply supply is limited if the tariffs are entry into force.
The Rafiner expects 457,000 BPD Mexican raw oil to be displaced and moved to Europe or Asia.
“We would expect to see the difficult groups a little just because of the inefficiency of logistics,” said Brian Mandell, an executive vice president of marketing and commercial business at Phillips 66. “
Phillips 66, together with HF Sinclair and a pair of Pacific Holdings, raised exposure to Canadian raw materials, show data from TD Cowen.
“Our commercial and optimization teams work hard on the development of any possible scenario that we can remember about and how we will answer,” said Gary Simmons, CEO Valero Energy, during an invitation with analysts on Thursday. “You could see 10% change of permeability. A lot depends on how far it goes and how much you have to pull on to some of these heavy barrels.”
Valero is the second biggest American raffic on capacity.
HF Sinclair, a pair of Pacific and Marathon did not immediately respond to the commenting requests.
Below are the latest available data on the amount of independent oil oil refineries imported from Canada and Mexico in November 2024.
Caniner Canada (thousands of Mexico (thousands of
barrels) barrels)
HF 5.060
Grains
Phillips 14.481 497
66
Pair 1,356
Pacific
Marathon 15.535 1.488
VALERO 1.147 6.599
Source: data from the US Energy Information Administration
Note: data published 31. January 2025
(Nicole -Jao reporting in New York; Montage Matthew Lewis)
