Fitch Cites PEMEX as Financial Concern: The Week in Oil and Gas

Fitch Ratings has reaffirmed Mexico’s sovereign credit rating. However, the outlook is clouded by growing concerns over PEMEX.

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Fitch Affirms Mexico’s BBB- Rating, Cites PEMEX Risks

Fitch Ratings has affirmed Mexico’s “BBB-” sovereign credit rating with a stable outlook, citing continued macroeconomic discipline and external stability, while warning of fiscal pressures driven by the deteriorating financial position of PEMEX.

Dos Bocas Exports First ULSD Shipment

Mexico exported a shipment of ultra-low-sulfur diesel (ULSD) produced at the Olmeca refinery in Dos Bocas, Tabasco, due to lacking domestic infrastructure to distribute the fuel nationally as intended in the country’s self-sufficiency strategy, according to Reuters.

IEA Lowers 2025 Oil Demand Forecast Amid Trade Tensions

The International Energy Agency (IEA) has revised downward its global oil demand growth forecast for 2025, citing rising trade tensions and weaker economic conditions. According to the agency’s April Oil Market Report, global oil demand is now expected to grow by 730Mbb/d in 2025, a reduction of 300Mb/d compared to last month’s projection. Demand growth is projected to slow further to 690Mb/d in 2026.

Mexican Crude Oil Price Falls Below Government Estimate

The price of Mexico’s crude oil exports has dropped below government projections for the second consecutive week, raising concerns about potential effects on the country’s public finances. To manage oil price volatility, the Ministry of Finance contracts annual hedges, which are among the largest in the global market.

PEMEX Reinforces Austerity Measures

PEMEX has tightened its internal austerity measures as part of broader efforts to stabilize its finances, following continued operational challenges and structural changes to its tax regime. The new austerity policy, approved during the company’s 1034th Board of Directors session on Feb. 26, 2025, mandates cost-cutting across electricity, water, and materials consumption.