US trade deficit with Canada linked to oil imports — Fortune
The US trade deficit in relations with Canada, which, according to a Fortune headline, is causing Trump displeasure, is linked to purchases of crude oil. Fortune reports that the US buys discounted Canadian crude oil for Midwestern refineries.
Feedstock for Midwestern refineries
According to the publication's description, these refineries depend on this type of feedstock. Fortune notes that it is the only oil they can use.
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The issue is related to the technical characteristics of the facilities, which are not adapted to process all types of oil. Therefore, purchases of Canadian feedstock affect the trade balance between the US and Canada.
Replacing the oil requires retooling
As Fortune explains, these refineries cannot use oil from Texas or Venezuela because they lack the equipment needed for this. Switching to another feedstock, according to the explanation provided in the article, would require years of work and billions in spending.
