8,369 Active Recruiters     Over 2 Million Candidates Globally

Advanced
  1. Keep me logged in
  2. forgot password
cancel

Checkout Jobs Basket (0)

You can checkout a maximum of 150 jobs.

Signup Better for Candidates

  • Create a free virtual CV and let recruiters find you
  • Automatically have your profile matched to suitable Oil & Gas positions
  • Link to your profile using it as a free online CV
  • Store all your employment documents to your profile for easy sending
  • Always receive feedback on positions applied for

Signup Better for Recruiters

  • Suitable candidates automatically matched to your position
  • View candidate profiles for free
  • No more waiting for candidates to respond to job advertisements
  • Only ever pay when you match a candidate to a position
  • No more cold calling and sorting through out dated CVs

Trump Tariff on Mexican Oil Could Slam U.S. Gulf Refiners

Published in Oil Industry News on Wednesday, 5 June 2019


Graphic for News Item: Trump Tariff on Mexican Oil Could Slam U.S. Gulf Refiners

U.S. oil refiners could get hit if crude is included in President Donald Trump’s threatened 5% tariff on Mexican goods.

Trump announced the tariff in a Twitter post on Thursday, without giving details. Mexico accounts for about 10% of U.S. oil imports, with sophisticated refineries along the Gulf Coast geared to turn Mexico’s sludgy Maya crude into gasoline and diesel.

Hot Tip

Oil and Gas People gives recruiters a live snapshot of the current oil and gas workforce and its availability. Update your profile every 60 days to stay visible to recruiters as actively looking. Better for candidates.. Better for recruiters..

On June 10th, the United States will impose a 5% Tariff on all goods coming into our Country from Mexico, until such time as illegal migrants coming through Mexico, and into our Country, STOP. The Tariff will gradually increase until the Illegal Immigration problem is remedied,.. — Donald J. Trump (@realDonaldTrump) May 30, 2019

A 5% tariff would add about $3/bbl to the cost of Maya, which was worth about $58 on Friday, according to data compiled by Bloomberg. The profit margin for using Maya to make fuels is $6.86/bbl, according to Oil Analytics data, so the increase in crude cost could slash that almost in half.

West Texas Intermediate, the U.S. benchmark, dropped 2.3% at 10:32 a.m. on the New York Mercantile Exchange, after earlier trading at the lowest since March 8. Trump’s tweet also rattled U.S. equities, with the Dow Jones Industrial Average sinking deeper into its longest streak of weekly losses since 2011.

Worst-hit among refiners would be Royal Dutch Shell Plc’s Deer Park plant in Texas, which is a joint venture with Mexico’s state oil company Petroleos Mexicanos. Shell is the biggest importer of Mexican crude, bringing in 148,000 bpd in February, according to data from the Energy Information Administration.

American companies Valero Energy Corp. and Chevron Corp. are the next-biggest purchasers, bringing in more than 200,000 bpd combined.

“At the moment the gas cracks look favorable for the refiners” in the U.S. Gulf, said Wood MacKenzie analyst Ixchel Castro in Mexico City. “But an increase in the price of Maya would affect the margins of those who already have the oil contracted and other producers will try to take advantage to place their heavy crudes at a more competitive price.”

There is some maneuver room for Pemex to send oil to Asia, but Mexico’s “contractual commitments limit this flexibility,” she added.

The proposed tariffs come at a time when the international market for heavy crude is tightening amid sanctions on Venezuela and Iran, ‘‘making it difficult for investors to ascribe value to widening crude quality differentials,’’ Cowen Inc. analysts led by Jason Gabelman wrote in a note to clients. The impact of the tariffs on refiners will start to show up in third-quarter earnings, the analysts said.

‘‘PBF Energy Inc. and Valero are most exposed to these impacts, while Phillips 66 and Marathon Petroleum Corp.’s exposure is less pronounced due to their more diversified nature,’’ the analysts said.

Valero's shares dropped as much as 4.7% in New York and PBF fell 3.5%.

Source: www.worldoil.com

Please leave comments and feedback below





Tags

Gulf of Mexico Oil and Gas, BP Oil and Gas, Oil and Gas News








Oil and Gas News Archive


Latest Oil & Gas News Articles







Featured Companies

  • View All JobsOMPA

    Offshore Marine People & Academy (OMPA) is a global provider of personnel and training to the renewables, oil & gas, telecommunications and marine industries.

    With over 15 years' industry experience, we work with candidates to match them to the right roles and equip them with the skills and knowledge needed to succeed. Our job is to exceed your expectations.

    Visit us online: offshorempa.com

  • View All JobsChronos Oil and Gas

    Chronos Oil and Gas is one of the fastest growing and best placed recruitment agencies in the sector.

    With over 300,000 candidates on our database and an international team of specialist recruiters we work with clients to staff major projects around the world.

    Register your CV at www.chronosoilandgas.com

  • View All JobsNatural Resources

    Natural Resources is a UK based recruitment company providing personnel of all disciplines and nationalities worldwide.

    We represent clients and candidates at all levels who operate globally within oil & gas, renewables, nuclear, power, mining, marine, drilling, construction and petrochemicals. Our client base includes energy and construction.

    Visit Natural Resources at natural-resources.com