Great News for our Canadian Juniors - NO Tariffs on oil

[dan_s]

WASHINGTON, April 2 (Reuters) - Imports of oil, gas and refined products were exempted from U.S. President Donald Trump’s sweeping new tariffs, the White House said on Wednesday.

The exemption will come as a relief to the U.S. oil industry, which had expressed concerns that new levies could disrupt flows and raise costs on everything from Canadian crude oil serving Midwest refineries to European cargoes of gasoline and diesel to the eastern seaboard.

Trump on Wednesday announced he would impose a 10% baseline tariff on all imports to the United States and higher duties on dozens of the country's biggest trading partners, deepening a trade war that he kicked off on his return to the White House.

The trade protections, however, do not apply to energy imports from Canada or Mexico – which are already exempted under the United States-Mexico-Canada Agreement free trade deal – nor do they apply to energy imports from any other country, a White House official said.

Canada and Mexico are the two largest sources of imported crude oil to the United States, while Europe is a significant source of imported fuel to the U.S. East Coast, which has a dearth of oil refineries.
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Team Trump told Donald that we must have the heavy oil from Canada unless he wants to see much higher gasoline and diesel prices.

[cmm3rd]

From Don Simmons at Hemisphere in response to my email inquiry today:

"Our understanding of the US tariff announcement yesterday is that Canadian producers who are USMCA compliant are exempt from the US tariffs and Hemisphere is compliant and exempt at this time. "

[dan_s]

Trading Economics:
Oil prices dropped over 6% on Thursday, with WTI crude falling to $67 per barrel, after eight OPEC+ countries unexpectedly announced they would increase oil production by 411,000 barrels per day in May, far more than the planned 135,000 bpd.
> OPEC cited strong market fundamentals but said future increases could be paused if needed. < So, despite the "Tariff War" OPEC sees higher demand for oil.
> Oil was already down over 4% after U.S. President Trump announced new tariffs, sparking fears of a global trade war that could slow economic growth and reduce fuel demand.
> While oil imports were exempt, investors worried the tariffs could still hurt the economy and inflation.
> Also, US crude inventories unexpectedly rose by 6.2 million barrels last week, contrary to forecasts of a 2-million-barrel draw, driven by a surge in Canadian imports.

Selloffs base on FEAR seldom continue.

Dropping the tariffs on oil imports is GREAT NEWS for all of the Canadian upstream companies.

[dan_s]

U.S. Senate votes to end ALL tariffs against Canada.

https://www.msn.com/en-us/news/politics/senate-votes-to-rebuke-president-trump-s-canada-tariffs-including-four-republicans/vi-AA1CbxMV