Balancing the new equation

Possible US tariffs on Canadian products, including crude oil; enhanced US sanctions on the Russian oil sector by the outgoing Biden administration just a few days before handing over power; the growing squeeze on the Iranian oil output; and the possibility that Russia’s war on Ukraine could come to a forced end soon are some of the variables that are impacting the global energy markets deeply and, at times, in contradictory directions. It is still uncertain when the proposed US tariffs on Canadian goods will begin — if at all. President Donald Trump is unpredictable; yet, until now, he remains firm on slapping the tariffs on March 4. Irrespective of when and if they begin, any such move would hurt the intertwined economies of Canada and the US in many ways. Refineries in the US Midwest, dependent on heavy Canadian crude, will have to select from: “Pay more for the crude that it transforms into gasoline and diesel or slash production,” says Rebecca F. Elliott in a The New York Times piece.