Through our Viewpoints series, Riveron experts share their
opinions on current topics, business trends, and industry news.
Today, on "Liberation Day", the 25% secondary tariffs
on countries that import heavy, sour Venezuelan oil (directly from
Venezuela or indirectly through third parties) went into
effect.
Markets expected volatility and Brent prices reached their
highest point in 2025 with the Brent-WTI spread at a two-month
low.
Gulf Coast refineries are often (partially) dependent on this
heavy, sour crude, which is now either more expensive and/or supply
is curtailed. It will be interesting to see which strategies Gulf
Coast refineries are implementing to adapt to these new challenges
in an already challenging refinery environment. Unfortunately, we
might see compressed margins for Gulf Coast refiners and higher gas
prices for consumers.
