Refinery Challenges and Market Dynamics

Many U.S. refineries are struggling with thin margins, making it unlikely they can absorb the costs incurred from the proposed tariffs. While some believe that companies could share the burden with consumers, the reality is that refinery margins are at some of the lowest levels seen in years, meaning passing on costs is more probable. Additionally, the potential approval of the Keystone XL pipeline could allow Canada to export oil to other markets, further squeezing U.S. refiners. The current landscape indicates that any tariff implementation would exacerbate existing challenges for these refineries, creating a more volatile pricing environment for consumers.