🫠U.S. oil refiners are facing a looming supply squeeze from Canada, their largest foreign crude supplier.
This supply squeeze when domestic refining operations have accelerated to near-record utilization rates.
👉🏼This critical supply bottleneck stems from a
•convergence of local pipeline constraints
•severe international export drop
•unprecedented regional processing runs
🔴Main reasons behind the looming crude drop
✍🏼The Canadian squeeze :
•Canada normally channels over 4 million barrels of crude daily to the U.S.
•However technical constraint and regional distribution adjustments in Alberta are beginning to curb southward export allocations.
✍🏼Midwest Volunerability :
•Refiners in the U.S Midwest are the most heavily exposed to this shock.
Because they rely on Canadian crude imports for nearly 70% of their total supply.
✍🏼Collapsing International Flows :
•A severe collapse in global oil exports from Iran , Russia and Saudi Arabia- aggravated by the ongoing blockades near the Strait of Hormuz- has cut off traditional alternative heavy crude blends.
✍🏼Mexico Redirecting supplies :
•Mexico state owned Pemex has been slashing heavy crude exports to the U.S Gulf coast by 200,000 to 250,000 barrels per day to feed its own expanding domestic refining footprint.
#USRefinersFaceLoomingCrudeSupplyDrop
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This supply squeeze when domestic refining operations have accelerated to near-record utilization rates.
👉🏼This critical supply bottleneck stems from a
•convergence of local pipeline constraints
•severe international export drop
•unprecedented regional processing runs
🔴Main reasons behind the looming crude drop
✍🏼The Canadian squeeze :
•Canada normally channels over 4 million barrels of crude daily to the U.S.
•However technical constraint and regional distribution adjustments in Alberta are beginning to curb southward export allocations.
✍🏼Midwest Volunerability :
•Refiners in the U.S Midwest are the most heavily exposed to this shock.
Because they rely on Canadian crude imports for nearly 70% of their total supply.
✍🏼Collapsing International Flows :
•A severe collapse in global oil exports from Iran , Russia and Saudi Arabia- aggravated by the ongoing blockades near the Strait of Hormuz- has cut off traditional alternative heavy crude blends.
✍🏼Mexico Redirecting supplies :
•Mexico state owned Pemex has been slashing heavy crude exports to the U.S Gulf coast by 200,000 to 250,000 barrels per day to feed its own expanding domestic refining footprint.
#USRefinersFaceLoomingCrudeSupplyDrop
$BTC
$BNB
$ETH