Meanwhile, US East Coast fuel buyers will need to turn to Europe’s refiners to replace some Canada supplies, according to Eugene Lindell of consultant FGE.
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Meanwhile, some fuel supplies typically sent from Canada into the US will become “uneconomical,” said Lindell, head of refined products at FGE.
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There’s also set to be a broader impact on markets for sludgy, sulfurous barrels known as high sulfur fuel oil. Tariffs on Mexico and Canada will make it too expensive to send supplies to the US, meaning about 260,000 barrels a day will have to be diverted away, according to FGE. In Europe, these barrels are at their most expensive relative to crude since 2019, on a seasonal basis.
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