The Mexican state oil company is in negotiations with possible buyers in Asia, including China, and in Europe, as well as alternative markets for its gross oil after US President Donald Trump imposed imports on imports, a senior Mexican government authority said.
Trump implemented 25% rates this week on Mexico and Canada products. While Canadian oil has gained an exception of a rate of 10%, Mexican oil should be taxed by 25%.
Last year, Pemex exported 806,000 barrels per day (BPD) of gross oil, of which 57% went to the United States. In January, exports fell 44% over the previous year to 532,404 BPD, the lowest level in decades.
Although Mexico is already sending gross oil loads to Europe and Asia-especially to India and South Korea, according to Kpler data-its northern neighbor receives most of flag-car exports, the Heavy Sour Maya.
The government official said Pemex was talking to possible new buyers in markets outside the US, speaking on anonymous condition because conversations are commercially sensitive.
“The good thing is that there is appetite for gross Mexican oil in Europe, India and Asia,” he said. “There is a demand for heavy gross oil and gross pemex.”
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The employee said the possible Chinese buyers were “very interested” in the initial conversations, adding that “demand will decide how these flows will be redirected.”
Two sources of PMI International Comercio, Pemex’s trade arm, confirmed to Reuters that China, India, South Korea and even Japan would be suitable markets for what Pemex produces in the face of tariffs despite higher transportation costs.
One of these traders said that “only Asia” could receive the volume that was not sent to the US, given the type of refineries that operate there, as they should be able to process the specific type of gross oil.
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Neither Pemex nor its business arm immediately responded to a commentary request.
Discountless
For weeks, traders speculated if the world’s most indebted energy company would give their US customers a discount while trying to keep them in the face of tariffs.
However, the government official categorically ruled out this concession and said that when current US contracts expire this month, ships will probably go to Asia and Europe. US buyers did not discuss the termination of contracts, the source added.
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The two sources of the business arm also confirmed that there were no plans to apply discounts to make their exports more competitive.
