Will this hurt our refineries, and raise prices at the pump.
8 replies (most recent on top)
Vcip deduction
A news article said Phillips 66 would reduce production at some refineries (this was before any news update was made about the 30 day pause in tariffs). But did anyone actually see anything directly from ELT? I guess I have to read about it after searching google instead.
Phillips 66 is the largest US importer of Canadian crude oil. Would there be plans to source that oil elsewhere while the tariffs are in place?
It's not as simple as just passing it on down the road to the customers. We have some refineries that are very dependent on Canadian crude that are competing against refineries that aren't.
It won't hurt both. Either the refineries will eat it and it will hurt them, or they will pass it on to the end consumer at the pump. My guess, the latter.
WCS - WTI differentials will expand to cover the additional tariff cost to US refiners. 70+ percent of Canadian crude can’t be exported anywhere besides the states.
Bankruptcy
In the short term, undoubtedly. Billings and WRR in particular are really dependent on Alberta crude, and until US crude and gas pricing catches up on higher demand, they'll be bleeding money. In the longer term, the demand shifts should more or less make the advantage come back. I doubt they'll keep the tariffs up long term once prices start to rise in the US anyways.