Washington: US President Donald Trump announced on Friday that its administration is likely to impose new oil and gas invoices on February 18, indicating a possible reduction in scheduled contributions to some Canadian imports.
The US is importing about 4 million barrels daily from Canada, about 70% of which are processed by refineries in Midwest, USA. An oil import invoice could lead to lower fuel production in these facilities and warn costs for consumers, analysts and companies.
Trump did not name a particular country where the new invoices would be implemented or provide more details on the plans.
“We will put in oil and gas invoices,” Trump told reporters at the White House Oval Office. “This will happen quite soon, I think around February 18th.”
Asked if tomorrow’s invoices will include a Canadian crude, Trump said: “We will probably reduce the invoice a little on it. We think we will reduce it to 10% for oil.”
This would be instead of 25% that Trump has previously spoken.
Many American oil refiners, especially on Midwest, are based on imported crude because their facilities are adjusted to run heavier raw levels, such as those of Mexico and Canada.
They expect clarity while preparing for new invoices in Canadian and Mexican raw imports. Earlier this month, Canadian crude imports in the United States hit record levels.
The US Refiner Phillips 66 expects production cuts in the Midwest and Rocky Mountain area, where alternative raw supplies are limited if invoices apply.
Phillips 66, along with HF Sinclair and Par Pacific Holdings, has increased exposure to Canadian argon, data from TD Cowen shows.
“Our commercial and optimization teams work hard to develop every possible scenario we can think of and how to respond” Trump’s tariffs, said Gary Simmons, a Valero chief officer, during a call with analysts on Thursday.
Valero is the second largest US refinerator per capacity.
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