Washington: US President Donald Trump announced on Friday that his administration should impose new petroleum and gas prices around February 18 around February 18, while suggesting a potential reduction in the samples planned for certain Canadian gross imports.
The United States imports some 4 million barrels a day of oil from Canada, of which around 70% are treated by refiners in the American Midwest. A price on petroleum imports could lead to a drop in fuel production in these facilities and increase costs for consumers, analysts and businesses.
Trump did not appoint a specific country in which new prices would apply or provide more details on the plans.
“We are going to put prices on oil and gas,” Trump told journalists in the White House oval office. “It will happen soon, I think around February 18.”
When asked if the prices of tomorrow include Canadian crude, Trump said: “I will probably reduce the price a little. We think we are going to bring it to 10% for oil.”
It would be instead of 25% that Trump has already spoken.
Many American oil refiners, especially in the Midwest, are counting on the imported crude because their facilities are configured to execute heavier gross notes, such as those in Mexico and Canada.
They expect clarity when preparing new prices on imports from Canadian and Mexican Brut. Earlier this month, Canada’s gross imports to the United States are reaching record levels.
The American refiner Phillips 66 expects production cuts in the Midwest and Rocky Mountain region where alternative raw supplies are limited if the prices come into force.
Phillips 66, as well as HF Sinclair and by Pacific Holdings, have high exposure to Canadian crude, TD Cowen data shows.
“Our sales and optimization teams worked hard to develop all the possible scenarios to which we can think and how we would answer” Trump prices, said Gary Simmons, Valero operating head, during a call with Analysts Thursday.
Valero is the second American refiner by capacity.