Pemex explores Asian and European markets for crude oil following US tariffs

Mexico's state-owned company, Pemex, is seeking caller buyers for its crude lipid successful Asia and Europe aft the imposition of US tariffs connected Mexican imports.

The tariffs, announced by US President Donald Trump, see a 25% levy connected Mexican crude, prompting Pemex to research alternate markets extracurricular the US, reported Reuters, citing sources.

In 2024, Pemex exported 806,000 barrels per time (bpd) of crude, with 57% destined for the US.

However, exports dropped importantly successful January, reaching a debased of 532,404bpd.

Pemex is present successful discussions with imaginable buyers successful non-US markets, including China, India and South Korea, to redirect its crude lipid exports.

A elder Mexican Government authoritative highlighted the request for dense crude, which Pemex produces, and mentioned that Chinese buyers person shown sizeable interest, the study said.

Sources from PMI Comercio Internacional, Pemex's trading arm, confirmed that Asian buyers including China, India, South Korea and Japan could beryllium suitable markets for Pemex's crude contempt accrued shipping costs, the study said.

One trader emphasised that lone Asia could accommodate the measurement not sent to the US owed to the circumstantial refinery requirements.

Speculation has arisen regarding imaginable discounts for US clients, but the authorities authoritative dismissed this possibility.

Once existent contracts with the US clients expire, Pemex is apt to redirect shipments to Asia and Europe.

The trading limb sources besides confirmed determination are nary plans to connection discounts to boost competitiveness.

Mexico's lipid production, chiefly from older fields successful the Gulf of Mexico, has declined to a four-decade low.

The delayed commencement of the caller 340,000bpd Olmeca refinery successful Dos Bocas has led to the continued export of crude, portion importing gasoline and diesel, chiefly from the US, continues.

In its astir caller report, Pemex reported a $9bn nonaccomplishment successful the 4th fourth of 2024, a stark opposition to the erstwhile year's profit.

The nonaccomplishment was driven by rising income costs, little fixed plus values and currency speech losses, underscoring the company’s pugnacious fiscal situation.

During the quarter, accumulation continued to decrease, with crude and condensate output dropping to 1.65 cardinal barrels per day, reflecting a astir 10% year-on-year decline.

Without accrued concern successful exploration and production, Mexico whitethorn look the imaginable of importing crude successful the aboriginal to enactment its refinery capacity.

"Pemex explores Asian and European markets for crude lipid pursuing US tariffs" was primitively created and published by Offshore Technology, a GlobalData owned brand.