En Español

Very usefull links


News links




Dow Jones

Oil price



Views and News





Mexico's Maya crude sold to U.S. West Coast for first time since 2008
Pemex has for years sought to diversify its crude export markets away from U.S. Gulf Coast refiners

Petroleumworld.com 01 16 2017

Mexico's Pemex [PEMX.UL] has begun selling heavy Maya crude for the first time since 2008 to U.S. West Coast refiners, the head of the state oil company's international trading arm said on Thursday.

Pemex, short for Petróleos Mexicanos, will also market more light Isthmus crude this year to the U.S. West Coast, with most, if not all of it, destined for California, Isaac Volin, chief executive of PMI Comercio Internacional, said in an interview.

The company plans to ship an average of 30,000 barrels per day (bpd) of Maya crude and 50,000 bpd of Isthmus crude over the course of 2017, he said.

The company sold spot shipments late last year to a Royal Dutch Shell refinery in California. But Volin said he wants to eventually enter into longer-term contracts with West Coast clients later in the year. He declined to name specific buyers.

Separately, Pemex's top oil trader said it was too soon to speculate about any impact on energy trade flows between the United States and Mexico if the next U.S. administration imposed a new border tax.

U.S. President-elect Donald Trump is considering taxing imports to protect American jobs and wages. While his specific plans are unclear, his comments have worried refiners that depend on crude imports between the two neighbors.

Pemex has for years sought to diversify its crude export markets away from U.S. Gulf Coast refiners, shipping more oil to Asian markets in recent years.

Volin said Pemex will export the crude from a recently remodeled terminal adjacent to its Salina Cruz refinery on the Pacific coast, lessening dependence on its export hubs clustered in the Gulf of Mexico, especially when they are hit by bad weather.

While crude export revenue once contributed as much as 40 percent of government revenue, that figure has dropped by less than half as oil prices have slumped over the past couple years.

"One thing we noted during 2016 is that it has become more attractive to export our crude to the West Coast of the United States than send it to other markets, like Europe," said Volin, a former head of BlackRock Mexico.

Pemex's European markets are saturated with crudes from the Middle East and the price it is paid in the West Coast, after discounting freight costs, is higher, he added.

The new West Coast shipments began in late November with 23,000 barrels of crude, Volin said, noting that the buyer of a subsequent December spot shipment paid $1.45 more per barrel than European buyers would have.

Pemex sold both spot shipments to Royal Dutch Shell's Martinez refinery near San Francisco, California, according to data from Thomson Reuters Eikon.

Due to Pemex sending more crude to its domestic refineries for processing, total crude exports in 2017 are likely to average between 1 million and 1.1 million bpd, Volin said, down from just over 1.2 million bpd last year.

Mexico's imports of refined products from U.S. suppliers hit a record in 2016 as Mexico's six domestic refineries processed much less crude, which has prompted some analysts to forecast more growth in gasoline and diesel purchases in 2017.

Volin, however, said Pemex expected to import less fuel this year than in 2016.

Gasoline imports are expected to dip to around 400,000 bpd, down some 17 percent, while diesel imports will fall to about 130,000 bpd, down nearly 30 percent from 2016, according to Volin.

The executive said the drop in fuel imports will begin after March.

Mexico is undergoing a gradual gasoline price liberalization, part of a landmark 2014 energy overhaul, which caused fuel prices to spike by double-digits on Jan. 1.

The price spike, known locally as a "gasolinazo," has led to angry protests across the country over the past couple weeks, including highway blockades and looting of gas stations.

This year Pemex could also begin its first-ever imports of U.S. light crude, which was authorized by the U.S. government for up to 75,000 bpd in 2015, he added.

It was not clear how much light U.S. crude might be imported, and Pemex's Industrial Transformation unit, which runs its refineries, has yet to submit a formal request, Volin said.

Story by David Alire Garcia ; Editing by Lisa Shumaker and Richard Chang from Reuters.

reuters.com | 01 13 2017

Copyright© 1999-2017 Petroleumworld or respective author or news agency. All rights reserved.

We welcome the use of Petroleumworld™ (PW) stories by anyone provided it mentions Petroleumworld.com as the source.

Other stories you have to get authorization by its authors. Internet web links to http://www.petroleumworld.com are appreciated.

Petroleumworld welcomes your feedback and comments, share your thoughts on this article, your feedback is important to us!

We invite all our readers to share with us
their views and comments about this article

Write to editor@petroleumworld.com

By using this link, you agree to allow PW
to publish your comments on our letters page.

Any question or suggestions,
please write to: editor@petroleumworld.com

Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels








Contact: editor@petroleumworld.com,

Editor & Publisher:P.Ohep F. /Producer - Publisher:P.Ohep F./
Contact Email: editor@petroleumworld.com

CopyRight © 1999-2016, Paul Ohep F. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2016, Petroleumworld   / Elio Ohep Fitzgerald- All rights reservedThis site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.