By The Financial District
Apr 41 min
Mexico’s state-controlled oil company plans to halt some crude exports over the next few months, a move that would cut supply from a tightening global market, reported Lucia Kassai for Bloomberg News.
Pemex canceled contracts to supply its flagship Maya crude oil to refiners in the US, Europe, and Asia. I Photo: cynren Wikimedia Commons
Petroleos Mexicanos, also known as Pemex, canceled contracts to supply its flagship Maya crude oil to refiners in the US, Europe, and Asia, according to sources familiar with the situation, who asked not to be named because the information is private.
The export cut, coming at a time when OPEC and its allies are already curbing production, threatens to drive up oil prices that are at a six-month high.
Physical supplies — especially heavier, sour grades such as Maya — are tightening even further with Venezuelan exports set to fall after the reinstatement of US sanctions on its oil industry.
JPMorgan Chase & Co. last week warned that global benchmark Brent could reach $100 a barrel this year. Pemex’s plan to suspend some exports is part of an effort to produce more domestic gasoline and diesel ahead of the June 2 presidential election, the sources said.