A Certain Buffoon Warned The...

[BlueSpot]

6. I haven't looked at the new tariff numbers but

I'm sure you know that the US imports a whole lot of crude. Heavy, sour crude. We produce a lot of crude now but it is mostly light, sweet crude. Several of the refineries in Texas have been reconfigured to deal with the light, sweet because Texas is a major producer due to fracking. Go further east to Louisiana and up into the Midwest and the refineries there rely on imported crude. They get it from Saudi Arabia and Canada and, I'm sure, other sources (don't feel like looking it up). eia.gov if you do.

So we've presumably got new tariffs on these imports and not enough refining capacity to utilize the crude we produce to supply our domestic gasoline demand. Prices are going to go up. I guess the good news, such as it is, is that the refineries will be switching over to the winter formulations in the next few months. Those typically result in lower prices which could help offset some of the tariff effects.

Next May, however, well, fill your tanks before May. The summer blend is more expensive.

We also export a lot of our light, sweet crude. Wonder how that will work when nobody wants to trade with us.