Trump tariff threats on Canadian oil could impact three US regions, gas analyst says
Published On Jan 31, 2025, 6:00 AM
Former President Trump's potential plan to impose tariffs on Canadian oil could significantly impact gas prices for consumers in the Midwest, Rockies, and Great Lakes regions. GasBuddy analyst Patrick De Haan indicated that such tariffs might lead to price increases exceeding $0.20 per gallon in these areas. Given the current rate of western Canadian oil at around $60 per barrel, the tariffs could further affect refined products delivered to the Northeast as well. This situation hints at a possible rise in gas costs due to diminished Canadian crude supplies amidst ongoing geopolitical tensions.
Stock Forecasts
XOM
Positive
The proposed tariffs could strain the supply of Canadian oil, pushing gas prices higher in several U.S. regions. This scenario may create a favorable environment for U.S. oil producers, as consumers seek alternative sourcing when prices rise. Investors should watch for shifts in demand for U.S. oil companies as tariffs could enhance domestic production profitability.
CVX
Negative
Rising gas prices could hurt consumer spending in other sectors as fuel costs consume more disposable income. If consumers expect continued price hikes, demand for oil-related stocks may cool off temporarily, especially those reliant on Canadian imports, which could signal a potential downturn.
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