Energy firms rise as Trump tariffs stoke supply worries

Northern Oil and Gas

03/02/2025 13:36

** U.S.-listed shares of oil companies rise premarket after
President Donald Trump imposed tariffs on Canada, Mexico and
China, raising fears of supply disruption  O/R 
    ** Brent crude futures  LCOc1  up 1.7% at $76.95/barrel and
U.S. West Texas Intermediate crude futures  CLc1  up 2.5% at
$74.39/barrel
    ** U.S. imposes 25% tariffs on Canadian and Mexican goods,
including 10% tariffs on Canadian energy imports and 10% tariff
on Chinese imports from Feb. 4
    ** TD Cowen expects U.S. refiners that run Canadian crude on
the margin to switch to light sweet crude, increasing WTI and
Brent prices if tariffs go ahead
    ** Adds that U.S. Gulf Coast refiners will likely back out
Mexican and Canadian heavy crude and make arrangements to
purchase crude from other heavy sour producers such as Iraq
    ** "Switching will likely tighten medium and heavy sour
differentials given less efficient trade flows... if it becomes
too expensive to switch, refiners could run less efficient crude
slates, reducing product supplied," brokerage says
    ** E&P cos Diamondback Energy  FANG.O  and Coterra Energy
 CTRA.N  each up 1%, EQT Corp  EQT.N  rises 2.8% and Northern
Oil and Gas  NOG.N  up 2.4%

 (Reporting by Pooja Menon in Bengaluru)
 ((Pooja.Menon@thomsonreuters.com;))