Tariff or no tariff, more TMX crude will find its way to Asia

Last week, US President-elect Donald Trump threatened to impose a 25% tariff on crude oil imports from Canada. If enacted, this move would throw US refineries into disarray and prompt Canadian oil exporters to redirect shipments to Asia. Since refiners need to blend the heavy sour North American crude with lighter components, grades such as WTI, ESPO, and Murban are expected to see increased demand in Asia as a result of the trade reshuffle.