Chinese refiners are importing record amounts of Canadian crude after slashing purchases of U.S. oil by roughly 90 per cent amid escalating trade tensions.
And guess who canada used to sell oil to? The US… Who typically has a thirst for Canada’s nice heavy crude oils to help balance out the light, sweet crude made by most American oil fields.
Sourcing heavy crude from other suppliers who have to bring it in via tanker, because Chinese buyers can outbid the tarriffed American buyers… Tankers are significantly more expensive than local pipelines, is going to drive the cost of middle distillates up a bunch on top of the tarriffs.
And guess who canada used to sell oil to? The US… Who typically has a thirst for Canada’s nice heavy crude oils to help balance out the light, sweet crude made by most American oil fields.
Sourcing heavy crude from other suppliers who have to bring it in via tanker, because Chinese buyers can outbid the tarriffed American buyers… Tankers are significantly more expensive than local pipelines, is going to drive the cost of middle distillates up a bunch on top of the tarriffs.