Mexico’s Refinery Goals Move ForwardBy Miriam Bello | Thu, 03/11/2021 - 17:18
Mexico’s plans for energy independence make global players question their investment. Meanwhile, the government keeps working toward the president’s ambitious goal for the refinery system. Find out the results of these decisions.
Here’s the Week in Oil and Gas!
Dollar Price Impacts Oil Prices
Due to exchange rate variations, crude prices will increase by 1 percent. Reuters expects the following changes:
- Brent futures for May were up US$0.77 or 1.12 percent at US$68.6/b.
- April WTI futures were up US$0.74 cents or 1.16 percent at US$65.2/b.
López Obrador’s Energy Reform Causes Global Concern
According to Reuters, oil authorities from the US, Canada and the EU have expressed their concern over Mexico’s new reforms, which are expected to impact many millionaire contracts. Legal action is expected to follow. However, El Economista reports that the Mexican government insists it is not violating any contract. The Mexican government’s intention is to strengthen the role of PEMEX and the CFE against private players.
LPG and Gasoline Prices Accelerate Inflation in Mexico
Mexican Oil Mix on the Rise
This week, the Mexican mix grew by a 0.27 percent, closing at US$62.83 after two days down. According to Oil and Gas Magazine, this may derive from the US’ economic stimulus package of US$1.9 billion.
US$100 Million to be Invested in Mexico This Year
Egyptian company Cheiron projects millions to be invested in the ongoing projects it has in the country. The company has also expressed its desire to work with the government and improve its investment by having enough local knowledge and support to create a virtuous circle.
PEMEX Bets on Fuel Oil
MBN reported that PEMEX enhanced fuel oil production at its refineries in an effort to meet the government's ambitious gasoline refining goals. The president’s goal for energy sovereignty is driving the country to invest more on fuel oil, moving away from renewable energy. Read the full report here.
Mexico Energy Forum Discusses Natural Gas
Héctor Moreira, CNH Commissioner presented “The Vision of CNH Regarding Mexico's Gas Sector Development.” He addressed the different kinds of natural gas commodities, the gap between gas production and consumption and the energic dependency of Mexico given the events of early March in Texas.