In Houston on February 6, U.S. refiner Delek expressed the possibility of processing more light, sweet crude oil, according to CEO Avigal Soreq, depending on its economic viability. This stance comes amid uncertainty regarding tariffs that could impact the supply of heavy sour grades from Canada and Mexico.
President Donald Trump had announced tariffs on Canadian and Mexican oil, temporarily deferred after discussions on Monday. Despite the U.S. being the top oil producer globally, much of its output consists of light crude, which may not match the heavy crude refining capacity predominant in domestic refineries.
We have knobs to open...we can do whatever is economic, Soreq stated during the Argus Global Crude Summit in Houston, implying a flexible approach to utilizing light, sweet crude in the company's refineries.
Delek foresees an increase in Permian Basin oil production reaching 250,000 to 300,000 barrels per day by 2025 and 2026. The U.S. Energy Information Administration projects total Permian Basin output at 6.61 million barrels per day in 2025 and 6.89 million barrels per day in 2026, compared to 6.31 million barrels per day in 2024.