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AMERICAS OIL: Tariffs Could Cut Refinery Throughput by 10%: Valero

AMERICAS OIL
USEnergy BulletsNorth AmericaCanadaBulletCommodities

Valero is well-positioned to find alternative crude sources if the US imposes a 25% tariff on Canadian imports, but this could reduce throughputs by 10%, its COO Gary Simmons said, cited by Argus.

  • Valero's USGC refineries can source feedstocks globally, but limits on heavy feedstock alternatives could impact product production.
  • President Trump has threatened tariffs on all Canadian and Mexican imports, but Commerce Secretary nominee Howard Lutnick suggested they might not be imposed if border security cooperation improves.
  • US refiners, not foreign suppliers, would pay the tariffs; whether Canadian crude prices fall enough to offset the tariff would depend on market dynamics and Alberta's response.
  • Valero, which reported record high heavy sour crude throughputs in Q4 2024, will adapt as needed, Simmons said.
  • The company processed an average of 608k b/d of heavy sour crude in Q4, up from 485k b/d on the year, demonstrating its flexibility in crude sourcing capabilities, Valero said.
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Valero is well-positioned to find alternative crude sources if the US imposes a 25% tariff on Canadian imports, but this could reduce throughputs by 10%, its COO Gary Simmons said, cited by Argus.

  • Valero's USGC refineries can source feedstocks globally, but limits on heavy feedstock alternatives could impact product production.
  • President Trump has threatened tariffs on all Canadian and Mexican imports, but Commerce Secretary nominee Howard Lutnick suggested they might not be imposed if border security cooperation improves.
  • US refiners, not foreign suppliers, would pay the tariffs; whether Canadian crude prices fall enough to offset the tariff would depend on market dynamics and Alberta's response.
  • Valero, which reported record high heavy sour crude throughputs in Q4 2024, will adapt as needed, Simmons said.
  • The company processed an average of 608k b/d of heavy sour crude in Q4, up from 485k b/d on the year, demonstrating its flexibility in crude sourcing capabilities, Valero said.