Commodities
US Oil Refiners Look to Latin America, Iraq After Trump Tariffs
- Brazil and Guyana are likely alternative sources of crude
- The levies may spur a partial re-routing of global flows
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US oil refiners will look to Latin America and the Middle East to replace suddenly more expensive Canadian and Mexican crudes following President Donald Trump’s tariff salvo, according to traders.
American processors are likely to seek alternative grades of the types of heavier oil produced by its neighbors from Brazil and Guyana, given their relative proximity, the traders said. They could even seek crude from as far away as Iraq, although it only produces a limited amount of so-called destination-free cargoes that can be exported anywhere, they said.