• 5 minutes Covid-19 logarithmic growth
  • 8 minutes Why Trump Is Right to Re-Open the Economy
  • 12 minutes Charts of COVID-19 Fatality Rate by Age and Sex
  • 14 minutes China Takes Axe To Alternative Energy Funding, Slashing Subsidies For Solar And Wind
  • 6 mins Which producers will shut in first?
  • 1 hour The Most Annoying Person You Have Encountered During Lockdown
  • 1 hour We are witnesses to the end of the petroleum age
  • 4 hours Its going to be an oil bloodbath
  • 52 mins Breaking News - Strategic Strikes on Chinese Troll Farms
  • 4 hours As Saudi Arabia Boosts Oil Output, Some Tankers Have Nowhere to Go
  • 9 hours Death Match: Climate Change vs. Coronavirus
  • 15 hours How to Create a Pandemic
  • 6 mins >>The falling of the Persian Gulf oil empires is near <<
  • 31 mins Saudi Aramco struggling to raise money for this year's dividend of $75 billion. Now trying to sell their pipelines for $10 billion.
  • 2 hours Natural gas price to spike when USA is out of the market
  • 15 hours TRUMP pushing Hydroxychloroquine + Zpak therapy forward despite FDA conservative approach. As he reasons, "What have we got to lose ?"
  • 16 hours Where's the storage?
Relentless Oil Price War To Cause Huge Number Of Well Shut-Ins

Relentless Oil Price War To Cause Huge Number Of Well Shut-Ins

Plunging demand, surging supply, and…

Don’t Believe The Oil Bulls

Don’t Believe The Oil Bulls

Oil prices have rebounded this…

U.S. Refiners Wanted Oil Imports Exempted From Mexico Tariffs

Crude oil

U.S. refiners and motorists may have dodged a bullet after the U.S. suspended indefinitely the threat to impose tariffs on all imports from Mexico after reaching a deal on immigration with its southern neighbor.

Since a week before Friday, June 7—when President Donald Trump said that the tariffs that would have entered into force on June 10 are indefinitely suspended—oil industry executives and lobbyists have been frantically urging state officials from the White House to the Commerce Department to the Treasury to reconsider the tariffs on imports of crude oil from Mexico.    

Gulf Coast refineries import heavy oil from Mexico to blend with the lighter oil to produce gasoline and other refined oil products. The tariffs that President Trump threatened at the end of May would have meant that U.S. refiners would pay more for the heavy crude from Mexico in a global market that is already short of heavy oil with the U.S. sanctions on Iran and with the sanctions on Venezuela, which resulted in U.S. imports from the Latin American country plunging from 603,000 bpd for the week ending January 25 to just 12,000 bpd for the week ending May 31.

So executives and lobbyists were busy working for a week toward some kind of solution or compromise and called for crude oil imports to be exempted from the tariffs on Mexico.

Last year, U.S. crude oil imports from Mexico averaged 665,000 bpd and accounted for most U.S. energy imports from Mexico, according to EIA data. Mexico was the source of 9 percent of U.S. imported crude oil, America’s third-biggest foreign oil supplier, behind only Canada and Saudi Arabia.  

Related: Large Chinese Refiner Starts Construction Of 320,000 Bpd Complex

Chet Thompson, President and CEO of the American Fuel & Petrochemical Manufacturers (AFPM), said in a statement right after the Trump Administration announced tariffs on products made in Mexico:

“Imposing tariffs on Mexican products, particularly crude oil, could raise energy prices for U.S. consumers, disadvantage the U.S. refining industry and jeopardize passage of USMCA — all bad outcomes. We thus urge the President not to pursue energy tariffs against one of our most important trading partners.”

In the week when tariffs on Mexican goods were on the table and imminent, lobbyists were busy explaining to the administration that tariffs on Mexican crude oil in a tight heavy crude market would mean rising gasoline prices just at the start of the summer driving season, a refinery lobbyist told Reuters last week.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage




Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News