• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 4 days They pay YOU to TAKE Natural Gas
  • 13 hours How Far Have We Really Gotten With Alternative Energy
  • 17 hours What fool thought this was a good idea...
  • 3 days Why does this keep coming up? (The Renewable Energy Land Rush Could Threaten Food Security)
  • 10 days The United States produced more crude oil than any nation, at any time.

U.S. Imports of Mexican Crude Slump to Record Low

As Mexico is slashing oil exports, U.S. imports of Mexican crude slumped last week to the lowest level on record, data from the Energy Information Administration (EIA) showed this week.

Weekly U.S. crude oil imports from Mexico fell to 209,000 barrels per day (bpd) in the week to April 5, the data from the EIA showed, as Mexican state oil firm Pemex is cutting exports to divert more crude to domestic refineries.  

To compare, U.S. imports of Mexican crude averaged more than 730,000 bpd last year.  

Mexico has started to cut the amount of crude oil it exports by 330,000 bpd as it redirects supply to local refineries, with the volume to be cut accounting for around a third of the total crude that Mexico sells abroad.

This month, Pemex has slashed oil exports by 436,000 bpd as Mexican refineries ramp up, including the new Dos Bocas facility, which will take in some 179,000 bpd this year. The refinery’s nameplate capacity is 340,000 bpd.

The reduction in exports was necessary because Pemex’s output has been on a steady decline due to natural depletion and not enough new discoveries. In February, the daily average production fell to the lowest in 45 years.

Currently, Pemex processes half of its daily crude oil output, which stands at an average of 1.8 million bpd, according to a recent update by Mexico’s President, Andres Manuel Lopez Obrador.

The cut in exports is partly due to efforts in Mexico to boost domestic gasoline and diesel output ahead of the presidential election on June 2, unnamed sources familiar with the plans told Bloomberg earlier this month. 

Mexico’s export cut took the market by surprise and added to the tightness in supply, especially of heavier sour grades.

The lower Mexican supply has boosted the price of the medium sour U.S. Mars crude, which is being produced in the Gulf of Mexico.


By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News