PEMEX Exports Increase to 1.2MMb/d in September
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PEMEX Exports Increase to 1.2MMb/d in September

Photo by:   Alexandra Koch
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Perla Velasco By Perla Velasco | Journalist and Industry Analyst - Fri, 11/04/2022 - 09:07

PEMEX crude production was stable at 1.77MMb/d in September 2022, while it exported 1.2MMb/d. In August, crude exports amounted to 914,665b/d, whereas in September 2021 exports amounted to 983,000b/d. The average price of the Mexican export basket was US$82.36/b, lower than the previous months. Exports to Europe increased by 85 percent to 149,734b/d, while exports to the Middle East increased by 80 percent to 292,008 b/d. 

As previously reported by MBN, PEMEX planned to decrease its exports and refine more in the country, as well as simultaneously drop its fuel oil production by 2H22. Nevertheless, the NOC’s mission appears to not go as planned. According to SENER, PEMEX’s fuel oil production from August to September was the highest recorded in the past five years. Fuel oil stock reached 1.015MMb in the last week of August. The previous five-year peak for September was recorded in 2021, when inventories totaled 912Mb. This comes as demand reaches its lowest level since SENER began recording this in 2018. At the same time, PEMEX continues to export the lion’s share of its production, a move backed by recently soaring oil prices.

PEMEX furthermore reported that fuel oil sales in the internal market represented 65,000b/d, while they reached 170,800b/d for the international market. Gasoline production was slightly lower in September: 242,000b/d compared to 278,888b/d of fuel oil. The numbers contradict the NOC’s intentions in the market, as the company seems to have seen an opportunity on the rise of oil prices since it has kept its exports over 900,000b/d.

Currently, PEMEX is awaiting the outcome of the dialogue regarding the USMCA spat between Mexico and the US. According to the NOC, leaving the treaty unchanged would lead to a renegotiation or cancellation of current contracts, which can affect the company. PEMEX reported to its investors that depending on the posture taken by the neighboring countries, the NOC could face financial and operational challenges.

Last month, the US government initiated measures that could still lead to the formation of a dispute panel under the USMCA due to Mexico’s alleged violations of the trade deal. According to US officials, Mexico’s energy policies violate the agreement by favoring PEMEX and CFE over private companies, thereby affecting US companies operating in Mexico. However the consultation period that ended in early October was extended and the consultations remain open, reported MBN.

Photo by:   Alexandra Koch

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