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US imports of Mexican crude lowest on record, EIA says
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US imports of Mexican crude lowest on record, EIA says
Apr 10, 2024 11:22 AM

MEXICO CITY/HOUSTON, April 10 (Reuters) - U.S. weekly

imports of Mexican crude oil fell to the lowest on record in the

early April, as Mexico's state energy company Pemex cut exports

to supply more to its domestic refineries.

The imports dropped to 209,000 barrels per day (bpd) in the

week ended April 5, data from the U.S. Energy Information

Administration (EIA) showed on Wednesday.

The imports averaged about 733,000 bpd in 2023. The previous

weekly low was 226,000 bpd in the last week of 2021.

Reuters reported last week that Pemex requested its trading

unit to cancel up to 436,000 bpd of crude exports for April and

at least 330,000 bpd for May to retain supplies for its own

refineries, including the newest, the Dos Bocas refinery.

The Dos Bocas refinery in the southeastern state of Tabasco,

which has been running behind schedule and over budget, is part

of President Andres Manuel Lopez Obrador's strategy to wean the

country off expensive gasoline and diesel imports.

Pemex last month disclosed its crude production in February

had fallen to the lowest level in 45 years.

The cancellations in April include a 122,000 bpd reduction

of Mexico's flagship Maya crude, prized by Gulf Coast refiners

that typically run medium and heavy oil.

A trader with direct knowledge of the matter said that while

operational issues typically lead to significant variations in

exports, the low export levels in April and May are likely to

continue over the coming months, meaning U.S. refiners and

traders will have to buy more barrels from the domestic market

to compensate.

U.S. refiners will also look for similar quality crude from

Canada or Venezuela, two sources familiar with the market

dynamics said.

To offset the shortage, the U.S. imported 531,000 bpd of

crude oil from Saudi Arabia last week, the highest in seven

months. Total U.S. imports fell 184,000 bpd to 6.4 million bpd.

Prices for heavier crude along the U.S. Gulf Coast have

climbed in recent weeks, in part due to the fall in Mexican

exports.

Maya prices at the U.S. Gulf Coast climbed to about $77.80

per barrel on Tuesday, compared with about $70 per barrel in the

last year, according to pricing data supplier General Index.

Shippers are weighing repositioning tankers to serve other

markets as Maya exports decline, a shipping industry source

said.

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