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Pemex Fires May Support Mexican Crude Exports in May

OIL

After initially planning large crude supply cuts in May, Mexico’s Pemex may have more volumes to supply after two of its refineries were hit by fires Bloomberg sources said.

  • Pemex is trying to make Mexico fully sufficient for oil product supplies by running its refineries at higher capacity and bringing new refineries online.
  • A boiler at the Salina Cruz refinery caught fire and on Friday the Minatitlan refinery had a fire and explosion.
  • Prior to the latest setbacks, Pemex was running its refinery utlisation at its highest rates in six years.
  • Mexico’s decision to export more is sending prices of competing sour oils lower according to Syntex Energy. Mars crude produced in the Gulf of Mexico now trading at $1.70 less than benchmark Nymex WTI - the widest discount since October.

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