Factbox-US imports of Canadian and Mexican crude oil by firm

NEW YORK (Reuters) – Many U.S. oil refiners rely closely on imported crude as a result of their services are configured to run heavier grades, reminiscent of these coming in from Mexico and Canada.

Refiners are awaiting readability and making ready for U.S. President Donald Trump’s threatened tariffs on crude imports from Canada and Mexico.

Trump stated on Friday that he would decrease threatened tariffs on Canadian oil to 10% and that tariffs on oil and fuel are prone to take impact on Feb. 18.

A tariff on oil imports may drive up the price of crude, pushing refiners to chop the quantity of oil their services course of. Refineries within the Midwest course of about 70% of the 4 million barrels per day (bpd) of crude imported from Canada.

Phillips 66 stated there may very well be manufacturing cuts within the U.S. Midwest and Rocky Mountain area the place various crude provides are restricted if tariffs take impact.

The refiner expects the 457,000 bpd of Mexican crude that comes into the U.S. may very well be displaced and transfer to Europe or Asia.

“We’d anticipate to see the heavy crudes agency a bit simply on the inefficiency of logistics,” stated Brian Mandell, govt vice chairman of selling and business at Phillips 66. “Because the yr goes on and OPEC places extra barrels again onto the market, we might anticipate these differentials to widen again out.”

Phillips 66, together with HF Sinclair and Par Pacific Holdings, has elevated publicity to Canadian crude, information from TD Cowen exhibits.

“Our business and optimization groups have been working exhausting to develop each potential situation we are able to consider and the way we might reply,” stated Gary Simmons, chief working officer of Valero Vitality, throughout a name with analysts on Thursday. “You may see at a ten% change in throughput. Loads depends upon how far it goes and the way deep it’s important to again off on a few of these heavy barrels.”

Valero is the second-largest U.S. refiner by capability.

HF Sinclair, Par Pacific and Marathon didn’t instantly reply to requests for remark.

Beneath is the most recent obtainable information on the amount of crude oil prime U.S. impartial refiners imported from Canada and Mexico in November 2024.

Refiner Canada (hundreds of Mexico (hundreds of

barrels) barrels)

HF 5,060

Sinclair

Phillips 14,481 497

66

Par 1,356

Pacific

Marathon 15,535 1,488

Valero 1,147 6,599

Supply: Information from U.S. Vitality Data Administration

Observe: Information launched on Jan 31, 2025

(Reporting by Nicole Jao in New York; Enhancing by Matthew Lewis)