Americas Weekly Oil Summary: Olmeca Facing More Delays

Pemex’s flagship Olmeca (Dos Bocas) refinery in Mexico is unlikely to produce any commercially viable motor fuels before the end of the year, according to Reuters sources.

• Oil processing at Mexico’s Pemex domestic refineries were reduced again in May to 51.8% as the impact of the Minatitlan refinery fire in April lingers.
• Mexico’s Pemex increased crude exports in May as domestic refinery runs failed to meet planned levels.
• Meanwhile, Mexico’s Pemex imported 11% more gasoline in May than the month prior, a further indication of AMLO’s lack of ability to reduce his countries reliance on imports.
• Mexican President-elect Claudi Sheinbaum has appointed economist and lawyer Luz Elena Gonzalez to become energy minister in the new government commencing Oct. 1.
• The Panama Canal Authority said June 26 that recent rains boosted water levels, allowing heavier ships with larger cargo loads to transit via the Neopanamax locks, Reuters reported.
• Venezuela crude production is up to 1mb/d, according to President Nicolas Maduro on state TV cited by Bloomberg.
• Exxon Mobil took the first step towards its seventh oil project in Guyana as it looks to further expand output from the South American nation, according to Bloomberg. The Hammerhead project will pump as much as 180 b/d as soon as 2029, subject to Guyanese government approval