Pemex in Jeopardy? US Oil Refiners Voice Concerns
Why Are US Oil Dealers Turning Away from the Mexican State Oil Giant?
Oil refiners along the Gulf of Mexico (now the Gulf of America, as renamed by Trump) are reportedly rejecting crude shipments from Mexico, citing concerns that state-owned Pemex (Petróleos Mexicanos) is supplying oil that is too watery—6% above industry standards—and of poor quality, making it unsuitable for gasoline and diesel production. This comes at a time when the Mexican government is implementing several structural reforms at the company, including increased budgetary allocations and granting greater autonomy to form partnerships aimed at boosting its financial performance. Meanwhile, refiners are turning to alternative suppliers, including Colombia and Canada.
With Mexico being one of the largest exporters of crude oil to the US, could this jeopardize an already struggling Pemex? As the US considers tariffs on Mexican oil imports and oil dealers continue backroom negotiations to prevent such tariffs, could this mark the undoing of Pemex?