US refiner Delek could run more light sweet oil if tariffs bite, CEO says (updated)

Delek US Holdings

06/02/2025 16:59

(Adds details on tariffs in paragraphs 2-4, EIA oil output in
paragraph 8)
    By Georgina McCartney and Arathy Somasekhar
       HOUSTON, Feb 6 (Reuters) - U.S. refiner Delek  DK.N  has
the option to run more light, sweet crude oil if it is
economical to do so, CEO Avigal Soreq said on Thursday, amid
tariff uncertainty threatening supplies of heavy sour grades
from Canada and Mexico. 
    U.S. President Donald Trump on Saturday announced a 10%
tariff on Canadian oil, and a 25% tariff on imports from Mexico,
though implementation was put on a month-long pause on Monday
after discussions between the countries' leaders.
    While the U.S. is the world's top oil producer, with output
at a record 13.5 million barrels per day of crude, much of it is
light in density and not ideal for domestic refineries that are
largely configured to refine heavy crudes.
    "We have knobs to open...we can do whatever is economic,"
Soreq said on the sidelines of the Argus Global Crude Summit in
Houston when asked whether Delek will run more light, sweet
crude in its refineries.
    Soreq also said the company expects Permian Basin oil
production growth of 250,000 bpd to 300,000 bpd in 2025 and
2026.
    The U.S. Energy Information Administration sees total
Permian Basin output at 6.61 million bpd in 2025, and at 6.89
million bpd in 2026, compared with 6.31 million in 2024. 

 (Reporting by Georgina McCartney and Arathy Somasekhar in
Houston; Editing by Nia Williams)
 ((Georgina.McCartney@thomsonreuters.com;))