U.S. refining stocks fall after Trump imposes tariffs

Par Pacific Holdings

03/02/2025 15:34

** Shares of U.S. refiners fall after President Donald Trump
imposed tariffs on Canada, Mexico and China
    ** Tariffs will raise costs for the heavier crude grades
that U.S. refineries need for optimum production
    ** Taking effect on Feb. 4, the tariffs include a 25% levy
on most goods from Mexico and Canada, with a 10% tariff on
energy imports from Canada
    ** Canada and Mexico are the top sources of U.S. crude
imports, accounting for about a quarter of the oil U.S. refiners
process, according to the U.S. Department of Energy
    ** TD Cowen analysts expect U.S. refiners that run Canadian
crude on the margin to switch to light sweet crude, increasing
prices for WTI and Brent crude
    ** U.S. Gulf Coast refiners are likely to back out Mexican
and Canadian heavy crude and make arrangements to purchase crude
from other heavy sour producers such as Iraq, says TD Cowen
    ** "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"
    ** Shares of Valero Energy  VLO.N , Marathon Petroleum
 MPC.N , Delek US  DK.N , HF Sinclair  DINO.N  and Phillips 66
 PSX.N  down between 1% and 1.8%
    ** Par Pacific  PARR.N  drops 2.7% and PBF Energy  PBF.N 
slides ~6%

 (Reporting by Vallari Srivastava in Bengaluru)
 ((Srivastava.Vallari@thomsonreuters.com;))