On January 24th, TD Securities stated in a report that US President Donald Trump has threatened to impose a 25% tariff on Canadian goods, including crude oil, which will prompt Gulf Coast refiners to seek alternative solutions. Refiners may seek to purchase heavy sulfur-containing crude oil from other sources, possibly from the Organization of the Petroleum Exporting Countries (OPEC). The report states that it is important to remember that OPEC has approximately 5 million barrels per day of idle production capacity, mainly consisting of medium sulfur crude oil, which may help replenish any reduced Canadian crude oil.
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