After Trump's tariffs, Mexico seeks Asian and European crude oil buyers

Adriana Barrera and Stefanie Eschenbacher

Wed, Mar 5, 2025, 5:16 PM 3 min read

By Adriana Barrera and Stefanie Eschenbacher

MEXICO CITY (Reuters) - Mexican authorities institution Pemex (0P0001RU5C.SA) is successful talks with imaginable buyers successful Asia, including China, and Europe, arsenic it seeks alternate markets for its crude aft U.S. President Donald Trump imposed tariffs connected imports, a elder Mexican authorities authoritative said.

Trump this week implemented 25% tariffs connected goods from Mexico and Canada. While Canadian crude won an objection of a 10% levy, Mexican crude is to beryllium taxed astatine 25%.

Last year, Pemex exported 806,000 barrels per time (bpd) of crude, of which 57% went to the United States. In January, exports slumped 44% year-on-year to 532,404 bpd, the lowest level successful decades.

While Mexico does nonstop immoderate crude to Europe and Asia - successful peculiar to India and South Korea, according to Kpler information - its bluish neighbour receives the lion's stock of exports of the flagship dense sour Maya.

The authorities authoritative said Pemex had been talking to imaginable caller buyers successful non-U.S. markets, speaking connected the information of anonymity due to the fact that the talks are commercially sensitive.

"The bully happening is that there's appetite for Mexican crude successful Europe, successful India, successful Asia," they said. "There's request for dense crude and Pemex crude."

The authoritative said imaginable Chinese buyers were "very interested" successful archetypal conversations, adding that "demand volition determine however these flows are redirected."

Two sources astatine PMI Comercio Internacional, Pemex's trading arm, confirmed to Reuters that China, India, South Korea and adjacent Japan would beryllium suitable markets for what Pemex produces successful the look of tariffs, contempt higher shipping costs.

One of those traders said that "only Asia" could instrumentality the measurement that was not sent to the U.S., fixed the benignant of refineries operating determination since they indispensable beryllium susceptible of processing the circumstantial benignant of crude oil.

Neither Pemex nor its trading limb instantly responded to a petition for comment.

Traders person for weeks speculated connected whether the world's astir indebted vigor institution would springiness a discount to its U.S. clients arsenic it seeks to clasp them successful the look of tariffs.

The authorities official, however, categorically ruled retired specified a concession and said that erstwhile the existent contracts with U.S. clients expire this month, vessels would apt caput to Asia and Europe. Buyers successful the U.S. person not discussed terminating contracts, the root added.

The 2 sources astatine the trading limb besides confirmed that determination were nary plans to use discounts to marque its exports much competitive.