OIL PRODUCTS
Mexico is importing more Asian gasoline to help to meet the 60% of its demand not covered by domestic production, Argus said.
- Pemex’s PMI, has purchased five May-loading cargoes from Asia, each approximately 296k bbl.
- Asian gasoline arrivals in May will average 54k b/d, compared to 3.8k b/d in April, Argus said.
- Only one Asian gasoline cargo was expected to load for Mexico in May amid a closed arbitrage.
- However, an incident at the 315k b/d Tula refinery – producing around 24% of Pemex’s gasoline – likely forced the state buyer to seek APAC cargoes.
- Mexico’s gasoline imports in H2 are expected to rise also, amid falling inventories and rising demand.
- Asian oil products constitute around 7-8% of all Mexico’s oil product imports in 2023, while 78% came from the US.
- Analysts expect Mexico to continue relying on imports to meet gasoline demand even after the 340k b/d Olmeca refinery reaches full operations, Argus said.
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