Analysis-Trump’s oil tariffs a boost for European and Asian refiners – Harris International Group LLC HIG Consortium

Written by Robert Harvey and Georgina McCartney

LONDON/Houston (Reuters) – Analysts and participants in the market told Reuters.

White House officials said that Trump was 25 % on Saturday of the customs tariffs on Canadian and Mexican imports and 10 % on goods from China that start on Tuesday to address a national emergency around Fintanel and illegal foreigners entering the United States. They said that Canada’s energy products will get only 10 %, but Mexican energy imports will be charged by 25 %.

Industry sources said that the customs tariff for the largest exporters of American crude imports will raise costs for the heavier raw rows that US refineries need to optimal production, which reduces their profit and possibly production discounts.

This provides refining refineries in other markets an opportunity to compensate for the difference. The United States is currently a source of diesel and gasoline importer.

David Wake, chief economist at the Consulting Company, said, “The lowest American diesel exports will support the European margins, while more export opportunities may remain in a strongly compressed gasoline market.”

“In general, it is positive for European refining refineries, but it is likely not for European consumers,” he added.

“European margins may improve because the northeastern United States will have to import more gasoline,” said an executive official in a mediation. “I think European and Asian qualifiers are the great winners.”

Matthias Toujni, founder of the upcoming Analysis Company, said that the tariff for raw sellers is likely to force the discount rates to find buyers. He said that the Asian yellowish is well ready to enjoy the discount of Mexican and Canadian crude, something that can also stimulate their profit margins.

Randy Horburon, head of energy refining, said that Asian filters can get a competitive advantage because they have the equipment needed to operate heavy rocks and also in the midst of raising their operating rates.

The expansion of the Trans Mountain (TMX) pipeline in Canada, which was launched last May, means that the pipeline can now ship 590,000 barrels per day to the Canadian Pacific coast.

Commercial sources said that high TMX shipments to China can replace imports from Venezuela and Saudi Arabia.

Wech in Fortaxa added that the Asia and Pacific refineries can also take advantage of fuel arbitration opportunities to the American West Coast, which may reach the high costs of raw materials that they incurred from raw sources from other places.

Certainly, there are expectations from the refineries of roles in the Middle West that will continue to buy Canadian crude, even with the customs tariff, and can simply transfer costs to their customers in the pump.

“People in the Middle West can look forward to spending 20 or 25 cents on an additional gallon for gallons,” said Stewart Galikman, CFRA Research Stock Analyst.

American raw materials

Energy Information Management Data (EIA), which represents about 28 % of fishermen’s diets in raw food in 2023.

Analysts said that the ability of the United States refineries to operate a more abundant supply than the light WTI ore instead of Canadian and Mexican oil will be limited due to its various characteristics.

“Perhaps the use of more WTI in local refineries is limited in the range, as it really needs the remaining fuel,” said Nile Crossby, Sparta analyst.

Although some American refineries have completed promotions to address more light rocks, this will lead to the loading of secondary units, which weighs both the economy and efficiency.

“When you put friction in the system, especially about the raw improvement of a matrix, it is likely to reach higher costs as a result,” said John England.

American imports from Canadian crude reached their highest level in the week until January 3, according to an environmental impact assessment, a potential sign of two tariffs storing the horizon definitions. Imports have declined slightly since then, as it lasted 3.72 million barrels per hour a week until January 24, but it is still high per year, according to the environmental measurement.

Meanwhile, American refineries have already witnessed a profit of record profits in 2022. The pioneer in oil, for example, told the fourth quarter profits without Wall Street estimates, after the weak margins took place in the field of refining to the first time. Since 2020.

Customs tariffs and high prices later can affect the ability of refining refineries in the United States to achieve strong profit.

“The mechanisms of placing customs tariffs on Mexico and Canada are very difficult for the competitiveness of the American regime,” added Crossby Sparta.

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