Asia likely to benefit from cheaper Canadian, Mexican oil if Trump imposes tariffs By Reuters

Source: The Patriot Light | AWK Network | VIEW ORIGINAL POST ==>

By Florence Tan and Siyi Liu

SINGAPORE (Reuters) – Oil producers in Canada and Mexico will likely be forced to reduce prices and divert supply to Asia if U.S. President-elect Donald Trump imposes 25% import tariffs on crude imports from the two countries, traders and analysts said.

Two sources familiar with Trump’s plan told Reuters that oil would not be exempted from potential tariff hikes on imports from Canada and Mexico even as the U.S. oil industry has warned the policy could hurt consumers, industry and national security.

The United States accounts for 61% and 56% of crude exports from Canada and Mexico, respectively, ship tracking data from Kpler showed.

Canadian crude exports have jumped 65% to about 530,000 barrels per day (bpd) so far this year, the data showed, after the opening of the expanded Trans-Mountain pipeline increased shipments to U.S. and Asia.

“The Canadian producers, if they face export constraints, if they’re not able to re-route their barrels that previously were exported to U.S. to other markets, may face deeper discounts and may also suffer some revenue losses,” Daan Struyven, co-head of global commodities research at Goldman Sachs, told reporters…

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