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Baltimore bridge collapse fuel supply effect ‘minimal’

  • : Oil products
  • 24/03/26

The early-morning collapse of a bridge across the entrance to the Port of Baltimore, Maryland, is likely to have a limited impact on Atlantic coast motor fuel supply, but truck deliveries in the region will be delayed.

"The impact on fuel supply is minimal," fuel supplier Mansfield said today, noting that Baltimore imports most of its refined product by pipeline and not the impacted waterway.

The Francis Scott Key bridge was hit at 1:30am ET today by the 116,851dwt container vessel Dali, on route from Baltimore to Colombo, Sri Lanka. The bridge collapsed into the river after the vessel hit one of its support columns, blocking the Patapsco River.

Fuel wholesaler Global Partners, which operates a Baltimore terminal just west of the collapsed bridge, said it is primarily supplied by pipeline but can take product by barge, ship and rail.

"We believe supply will continue to flow to these markets," Global Partners said today. "However, trucking will be constrained and less efficient."

Trucks will have to take longer routes to deliver fuel, with delays that may last for several months, Mansfield said earlier this morning.

Global Partners would like to see hours of service waivers for trucking in the region to minimize fuel supply disruption to customers.

Kinder Morgan's 269,000 bl Baltimore ethanol terminal, located next to the Global Partners terminal, has faced no impact to operations, the company said today just after 2pm ET.

Rebuilding the bridge could take "several years", fuel markets consultant Don Draizin told Argus. He expects the waterway to open sooner, in perhaps or month or so, with his main concern around trucking given the Colonial pipeline supplies the bulk of refined products in the region.

The Maryland Port Administration told Argus today it does not know how long the port will be closed. Shipping companies are bracing for a closure of at least two weeks, although many expect the clean-up effort could take significantly longer

Port of Baltimore commodity infrastructure

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25/01/31

Trump tariffs to hit Canada, Mexico, China on 1 Feb

Trump tariffs to hit Canada, Mexico, China on 1 Feb

Washington, 31 January (Argus) — President Donald Trump will proceed with plans to impose 25pc tariffs on imports from Canada and Mexico and 10pc on imports from China on 1 February, the White House said today. The White House pushed back on reports that the tariffs would be delayed and declined to confirm whether Trump made a decision on whether to exclude Canadian and Mexican crude from the tariffs. "Those tariffs will be for public consumption in about 24 hours tomorrow, so you can read them then," the White House said. The looming face-off on tariffs has unnerved US oil producers and refiners, which are warning of severe impacts to the integrated North American energy markets if taxes are imposed on flows from Canada and Mexico. Industry trade group the American Petroleum Institute has lobbied the administration to exclude crude from the planned tariffs. Trump on Thursday acknowledged a debate over the application of tariffs to oil but said he had yet to make a decision on exemptions. The White House dismissed concerns about potential inflationary effects of Trump's tariffs. "Americans who are concerned about increased prices should look at what President Trump did in his first term," it said. Canadian prime minister Justin Trudeau reiterated today that Ottawa would retaliate against US tariffs. Nearly all of Mexico's roughly 500,000 b/d of crude shipments to the US in January-November 2024 were waterborne cargoes sent to US Gulf coast refiners. Those shipments in the future could be diverted to Asia or Europe. Canadian producers have much less flexibility, as more than 4mn b/d of Canada's exports are wholly dependent on pipeline routes to and through the US. Canadian crude that flows through the US for export from Gulf coast ports would be exempt from tariffs under current trade rules, providing another potential outlet for Alberta producers — unless Trump's potential executive action on Canada tariffs eliminates that loophole. Tariffs on imports from Canada and Mexico would most likely have the greatest impact on US Atlantic coast motor fuel markets. New York Harbor spot market gasoline prices are around $2/USG, meaning a 25pc tariff on Canadian imports could up that price by as much as 50¢/USG. This could prompt buyers in New England or other US east coast markets to look to other supply options. Canadian refiners could also start sending their product to west Africa or Latin America. US refiner Valero said that the tariffs could cause a 10pc cut in refinery runs depending on how the tariffs are implemented and how long they last. The tariffs may affect regional natural gas price spreads and increase costs for downstream consumers, but there is limited scope for a reduction in gas flows between the two countries — at least in the short term. The US is a net gas importer from Canada, with gross imports of 8.36 Bcf/d (86.35bn m³/yr) in January-October, according to the US Energy Information Administration (EIA). The US' Canadian imports far exceeded the 2.63 Bcf/d it delivered across its northern border over the same period, EIA data show. Tariffs on Canadian and Mexican imports also will disrupt years of free flowing polyethylene (PE) and polypropylene (PP) trade between the three countries, market sources said. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Mexico braces for Trump tariffs, readies responses


25/01/31
25/01/31

Mexico braces for Trump tariffs, readies responses

Mexico City, 31 January (Argus) — Mexico awaits Saturday's deadline for US president Donald Trump's tariff implementation with a "cool head" and has prepared alternative options to react, President Claudia Sheinbaum said after Trump confirmed Thursday he plans to proceed with his threats to impose 25pc tariffs on all imports from Mexico and Canada. Earlier this week, Sheinbaum said she still believed Trump would call off the plans for punitive tariffs over demands that Mexico, along with Canada, take stronger measures to halt flows of immigrants and the opioid fentanyl from the bordering countries into the US. Regardless, Mexico has prepared a "Plan A, B and C" to address any of the scenarios that could take place, Sheinbaum said. "We will always defend respect for our sovereignty and a dialogue as equals, but without subordination," she said, emphasizing that Mexico will always keep a cool head when taking decisions and rely on its preparation. When pressed on potential retaliatory tariffs coming from Mexico, Sheinbaum has so far been evasive. US tariffs would harm Mexico's energy sector, as nearly all of Mexico's roughly 500,000 b/d of crude shipments to the US in January-November 2024 were waterborne cargoes sent to US Gulf coast refiners, although these cargoes could be diverted to Europe or Asia. When Trump was asked Thursday if his tariffs might exempt crude imports, he said he was not inclined to exclude them but has yet to make a decision. "We may or may not" exclude oil, Trump said. "It depends on what the price is, if the oil is properly priced, if they treat us properly." On Friday the White House repeated that it plans to implement the tariffs on 1 February . Mexico also imports the majority of its road fuels and LPG from the US, according to energy ministry data. By Cas Biekmann Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Trump tariffs most likely to bite US east coast market


25/01/31
25/01/31

Trump tariffs most likely to bite US east coast market

Houston, 30 January (Argus) — The prospect of the US imposing 25pc tariffs on imports from Canada and Mexico would most likely have the greatest impact on US Atlantic coast motor fuel markets. President Donald Trump repeated plans to impose the tariffs this weekend , although he said crude may be exempted from the plan. But a crude exemption would not matter in the case of Irving Oil's 320,000 b/d Saint John, New Brunswick, refinery, which is a regular source of gasoline and diesel to the US' upper Atlantic coast markets. The US imported roughly 595,000 b/d of oil products from Canada in October, according to the latest Energy Information Administration data, most of it bound for the Atlantic coast. New York Harbor spot market gasoline prices are currently around $2/USG, meaning a 25pc tariff on Canadian imports could up that price by as much as 50¢/USG. This could prompt buyers in New England or other East coast markets to look to other supply options. Canadian refiners could also start sending their product to west Africa or Latin America. In the US midcontinent, as much as 4.25mn b/d of US midcontinent refining capacity relies on heavy sour Canadian crudes for up to 70pc of their supplies. In theory, US midcontinent refiners could run lighter, US-produced grades. But there are relatively few pipelines serving the midcontinent with such grades and they would be much less profitable to refine compared to a pre-tariff WCS barrel. Chicago gasoline spot prices were just under $2/USG today, so a 25pc tariffs would also add 50¢/USG to prices. Chicago Buckeye Complex ultra low sulphur diesel (ULSD) prices were at $2.18/USG today while West Shore/Badger ULSD prices below that at $2.15/USG. Imports of Mexican refined products should be less of an issue as Mexico sent only 180,000 b/d of products to the US in October, according to the latest data. Counter tariffs on crude and oil products by Mexico or Canada would also be an issue for US refiners and blenders. US refiner Valero said today that the tariffs could cause a 10pc cut in refinery runs depending on how long the tariffs go and how fast they are implemented. By Dave Ruisard and Eunice Bridges Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Jamaica discusses proposals for Kingston refinery


25/01/30
25/01/30

Jamaica discusses proposals for Kingston refinery

Kingston, 30 January (Argus) — Jamaica is discussing "significant" unsolicited proposals from prospective operators of the state-owned 35,000 b/d Kingston refinery, energy minister Daryl Vaz said. The discussions will determine the government's position on the refinery's future, he said, without naming the entities involved in the discussions. State oil company Petrojam manages the unit. A government-appointed committee recommended in 2020 that the 55-year-old facility be privatized. The government has not yet taken a decision on the future of the refinery, "so those recommendations are still under review," Vaz told the island's parliament. The committee that studied the operations of the refinery had rejected a government plan to upgrade the facility. It said instead private management was "the only credible opportunity" to improve its operations. It also said the plant should be mothballed if the government cannot find investors willing to acquire or lease it. Venezuelan outreach Jamaica's parliament approved the government's 2019 takeover of PdV's stake in Petrojam, saying the Venezuelan firm had reneged for years on a plan to upgrade the facility and expand it to 50,000 b/d. The PdV shares are still being held in escrow. The escrow account was created "as Venezuela was the target of US sanctions which prohibit Jamaica from making any direct payment to Caracas," Jamaica's government said at the time. It was intended to "insulate" Jamaica from also being subject to US sanctions. Venezuela has indicated it wants to discuss the shareholding and "we responded to that but we have not heard back," Vaz said. Kingston is the island's only refinery and supplies about 32,500 b/d of products to the domestic market, according to official figures. Jamaica produces no crude and the refinery processes imports from the US and Mexico to produce diesel, heavy fuel oil, kerosene, jet fuel, LPG, asphalt and gasoline. The island's demand is 70,000 b/d. By Canute James Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Tariffs could cut refinery throughput by 10pc: Valero


25/01/30
25/01/30

Tariffs could cut refinery throughput by 10pc: Valero

Houston, 30 January (Argus) — US refiner Valero is in a strong position to find alternative sources of crude if the US imposes a 25pc tariff on Canadian imports, but the switch could still cut throughputs by 10pc, the company said today. Valero's refining footprint in the US Gulf coast allows it to source feedstocks from around the world, but there is a point where a limit on heavy feedstocks like those from Canada could affect production of refined products, said chief operating officer Gary Simmons during a fourth quarter earnings call. "You might see a 10pc change in throughputs" depending on how long the tariffs go and how fast they are implemented, he said. Valero operates 1.6mn b/d of refining capacity in the US. President Donald Trump has threatened to impose 25pc tariffs on all imports from Canada and Mexico as soon as 1 February. But commerce secretary nominee Howard Lutnick said earlier this week that the tariffs may not be imposed if the countries cooperate on border security. Trump frequently makes the case that foreign suppliers are solely responsible for paying tariffs, while it is actually US importers that pay the tariffs. In the case of Canadian and Mexican crude, the US refiners that buy from those countries would pay a tax on the value of crude imports. Whether the price of Canadian crude falls by a sufficient amount to offset the 25pc tariff would depend on the market power of individual US refiners and Canadian producers, as well as actions by the Alberta government, according to a recent report by the Congressional Research Service. Valero does not have any details on how the tariffs would be applied and will just "have to deal with it when it comes up," Simmons said. The company reported record high throughputs of heavy sour crude in the fourth quarter of 2024. Heavy sour crude runs averaged 608,000 b/d, compared with 485,00 b/d in the same period in 2023. The increase showed the refining system's flexibility and the company's ability to secure and process the most economic crude oils, Valero said. By Eunice Bridges Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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