New York (Reuters) – Many US oil refineries depend heavily on imported crude because their facilities are formed to operate heavier degrees, such as those coming from Mexico and Canada.
Refiner refineries are awaiting clarity and preparedness for patients with the heavy patients of US President Donald Trump on raw imports from Canada and Mexico.
Trump said on Friday that he would reduce the tariffs threatened with Canadian oil to 10 % and that the definitions of oil and gas are likely to enter on February 18.
The customs tariffs on oil imports may raise the cost of crude, which causes refining refineries to reduce the amount of oil from their facilities. Refineries in the Middle West are about 70 % of 4 million barrels per day (BPD) of raw imported from Canada.
Philips 66 said that there could be production cuts in the Middle West and Rocky rocky rock, where the alternative raw supplies are limited if customs duties become in effect.
The refinery is expected 457,000 barrels on the Mexican raw day that comes to the United States, and to move to Europe or Asia.
“We expect to see a little heavy Crudes on the inefficiency of logistics services. We expect these teams to expand,” said Brian Mandel, Executive Vice President of Marketing and Trade in Philips 66.
Philips 66, along with HF Singlair and PAR Pacific Holdings, has a high exposure to Canadian crude, data from TD Cowen offers.
“Our business and improvement teams are working hard to develop every possible scenario that we can think about and how to respond,” Gary Simons, the Valero Energy Senior Operation Office, said during a call with analysts on Thursday. “You may see a 10 % change in productivity. It depends a lot on the extent you are going and how deep you are to back down from some of these heavy barrels.”
Valero is the second largest American refinery by capacity.
HF Singlair, Par Pacific and MARATHON did not immediately respond to the suspension requests.
Below is the latest data available on the size of crude oil refineries in the independent United States imported from Canada and Mexico in November 2024.
Canada Refinery (thousands of Mexico (thousands of
Permels (barrels)
HF 5,060
Sankler
Philips 1481 497
66
Par 1,356
Pacific Ocean
Marathon 15,535 1,488
Valero 1,147 6,599
Source: Data from the US Energy Information Department
Note: The data released on January 31, 2025
(Participated in the reports of Nicole Gao in New York; edited by Matthew Lewis)