Asia to Benefit from Cheaper Canadian, Mexican Oil Amid Tariffs

In a recent development, Canadian oil exports have witnessed a significant surge of 65% to approximately 530,000 barrels per day (bpd) so far this year. Conversely, Mexican oil exports have experienced a decline of 21% to about 860,000 bpd this year. The imposition of 25% tariffs on crude imports from Canada and Mexico by US President-elect Donald Trump is likely to have a profound impact on the global oil market. As a result, Asian refiners are poised to receive more Canadian and Mexican oil, with potential destinations including China and India. This shift in oil supply dynamics could lead to cheaper oil prices in Asia, benefiting the region's economies. The trend is expected to continue, with Canadian oil exports likely to increase further, while Mexican oil exports may decline. The implications of these changes are far-reaching, and it remains to be seen how the global oil market will adapt to this new reality.