Mexican oil production has fallen to historically low levels in January, hitting the lowest point in at least 40 years. This decline has been attributed to the aging of oil fields in the country, along with a lack of significant discoveries in the last decade. Additionally, quality issues, such as high water and salt content in the oil, have negatively impacted production.
In the midst of this situation, Petróleos Mexicanos (Pemex) has been exploring the possibility of selling barrels of oil to alternative markets, such as China and Europe. Pemex's discussions to diversify its buyer countries arise as a result of decreased orders for Mexican oil from the United States, especially after proposed 25% tariffs were ultimately paused.
According to information from Bloomberg and Reuters, oil sales to the United States have declined, with orders for March 17% lower than in February. Following expectations of Trump’s tariffs, scheduled to potentially take effect on April 2, U.S. interest in Pemex's crude has waned.
Thanks to interest shown by China and India in Pemex oil, the company is in negotiations to expand its sales in Asia and Europe. It has been noted that there is a growing demand for heavy crude and specific Pemex crude from these countries. Furthermore, negotiations are expected to advance as Asian demand strengthens.
Besides China and India, other countries that have expressed interest in acquiring Pemex oil include South Korea and Japan, mainly from Asia. Although Europe is also mentioned as a market with potential interest, it has not been specified which European countries could be the main buyers.
In any case, the decline in Pemex sales to the United States has prompted the company to seek alternative markets for its oil. While U.S. demand is expected to be offset by Asia, uncertainty regarding the possible imposition of tariffs by Trump still persists.
Despite trade tensions and low demand in the United States, Pemex has not discussed the termination of contracts with its U.S. buyers. The company continues to explore opportunities in alternative markets while facing an uncertain scenario in the global oil industry.
