Robert Harvey and Georgina McCartney
London/Houston (Reuters) – US President Donald Trump trade on Canadian and Mexican oil imports will offer European and Asian refineries a competitive advantage of their US rivals, analysts and participants in the market.
On Saturday, Trump ordered 25% of tariffs to Canadian and Mexican imports and 10% on the goods from China, starting with Tuesday to address the national emergency situation over the fentanil and the illegal strangers who entered the United States, said the whites of the White House. Energy products from Canada will only have 10% of the customs duties, but Mexican energy imports will be charged a full 25%, they said.
Tariffs on the two largest sources of oil imports in the United States will increase the costs for severe refineries in the US in the need for optimal production, said industrial sources, reducing their profitability and potentially forcing the reduction of production.
This provides refineries in other markets to make up for the difference. Now the exporter of diesel is currently an importer of gasoline.
“Less American diesel exports would support European margins, while more export opportunities can remain in a powerful market on gasoline,” said the chief economist of Vortex Counseling David Wech.
“So overall positive for European refineries, but it’s probably not for European consumers,” he added.
“European margins can improve because the US northeast will have to introduce more gasoline,” said the executive director of the brokerage house. “I think European and Asian refiners are big winners.”
Tariffs would also probably force the raw oil sellers to find the customers to find customers, said Matias Togni, founder of the Next Barrel analytical company. Asian refiners are well willing to meet the fact that she lowered Mexican and Canadian raw to raw, something that could increase their profit margins, he said.
Asian refiners could get a competitive advantage because they have equipment to launch a difficult folk, and also in the midst of increasing running rates, said Randy Hurbur, a head of refining on energy aspects.
The Trans Mountain (TMX) pipeline in Canada, which was launched last May, means that the pipeline can now deliver an additional 590,000 barrels per day on the Pacific Ocean.
Higher TMX shipments at China could replace imports from Venezuela and Saudi Arabia, the trade sources said.
Asian-Pacific refiners could also use the fuel arbitration options to the West Coast of the United States, which could be affected by the higher cost of raw material from the procurement of raw oil from further, Vortex’s Wech added.
