PEMEX Increases Crude Exports to the USBy Karin Dilge | Mon, 06/27/2022 - 12:52
State-owned oil company PEMEX significantly increased its crude exports to the North American market, particularly to the US, according to the most recent report of the NOC. Nonetheless, the report shows significant exports cuts to Europe and Asia.
PEMEX reported that its crude exports in May 2022 averaged 965Mb/d, from 740Mb/d were destined to the American region, principally the US, this compared to 594Mb/d in April, representing a 24.57 percent increase. Exports to Europe decreased to 32Mb/d from 100Mb/d. Exports to Asia decreased 41.8 percent, going from 330Mb/d to 192Mb/d.
According to border and customs data, refining companies in the US imported the highest volume of heavy crude in almost two years, a necessary solution to substitute the Russian oil US President Joe Biden vowed to stop importing.
An import increase during the summer is a common occurrence, but this year’s increment appears at a time that the US government asks refineries to elevate production and reduce income margins to curb skyrocketing fuel costs.
In March, the Biden administration prohibited the import of crude refined oil products coming from Russia, establishing April 22 as the limit to buy from the country.
In the meantime, PEMEX produced an average of 1.67Mb/d of crude and exported on average 930Mb/d of crude in the first five months of 2022.
In December 2021, the Mexican government and the NOC announced that exports would be drastically reduced in 2022 and eventually stop in 2023, as part of the plan to process crude locally and produce the fuel and diesel necessary to achieve energy sovereignty within Mexico. Nonetheless, the country decided to take advantage of ballooning international crude prices, which so far have enabled the government to cover subsidies on gas prices and allowed PEMEX to tackle its gargantuan debt.
In May, the total crude exports of PEMEX observed a fall of 5.76 percent compared to April, nevertheless, this negative effect did not reflect on the value of these exports, which increased 1.62 percent month-over-month, reports the NOC.
During the fifth month of the year, the state-owned company exported on average 965Mb/d, which represents a fall of 6.4 percent in comparison to the same period of last year. The crude exports during the first five months of the year sum up to US$13.31 billon, which is US$4.6 billion more than what was registered in 2021 during that same period. National fuel sales reached US$22.07 billion. For PEMEX, 2022’s comparative value of crude exports is 53.3 percent higher so far. Internal sales grew 79.8 percent in comparison to the same period in 2021.
At the same time, expenses for importing petroleum were higher in the first five months of the year, too. PEMEX paid US$11.3 billion, 51.9 percent more, after paying US$5.4 billion in 2021.
On average, the price for the Mexican export mix is US$94.85/b, significantly more than the US$59.09/b from 2021.