U.S. refiners and motorists may have avoided a bullet after the U.S. rejected the warning indefinitely to impose tariffs on all imports from Mexico after achieving a deal on migration with its southern neighbor.
From a week before Friday, June 7—when President Donald Trump mentioned that the tariffs that might have made effect on June 10 are indefinitely suspended—oil business executives and lobbyists were frantically requesting state officers from the White House to the Trade Division to the Treasury to rethink on the tariffs on imports of crude oil from Mexico.
Gulf Coast refineries import heavy oil from Mexico to mix with the lighter oil to supply gas and different delicate oil products. The tariffs that President Trump warned at the end of May would have intended that U.S. refiners may pay more for the heavy crude from Mexico in an international marketplace that is already wanting heavy oil with the U.S. sanctions on Iran and with the sanctions on Venezuela, which led to U.S. imports from the Latin American country jumping from 603,000 bpd for the week ending January 25 to 12,000 bpd for the week ending May.
So executives and lobbyists have been busy operating for a week towards a few kinds of resolution or agreement and called for crude oil imports to be spared from the tariffs on Mexico.
In 2018, U.S. crude oil imports from Mexico averaged 665,000 bpd and accounted for most U.S. power imports from Mexico, consistent with EIA data. Mexico was the source of 9% of American imported crude oil. The united states’ third-largest international oil provider, behind only Canada and Saudi Arabia.