Tariffs on Mexican Crude and Consequences for the US Market: US Refiners Are Placing Fewer Orders for Mexican Crude Oil
Lucia Kassai, Bloomberg News
HOUSTON
EnergiesNet.com 03 06 2025
US Gulf Coast refineries had already been placing fewer orders for crude oil from Mexico even ahead of President Donald Trump’s tariffs put in place this week.
American fuelmakers have ordered 410,000 barrels a day of Mexican crude oil for loading in March, or 17% less compared with orders made for February, according to a loading program seen by Bloomberg. All the orders, known as nominations, were placed by the end of February, before Trump confirmed this week that tariffs of 25% on Mexican goods, including crude oil, would be enacted.
Analysts have warned that tariffs on Mexican crude imports are likely to raise gasoline prices around the US and cause supply-chain issues for the refiners that make the fuel. Some 40% of the crude oil processed at US refineries is imported, with Mexico coming in as the No. 2 foreign supplier, trailing Canada.
Overall, Mexico’s state oil company Petroleos Mexicanos plans to export 749,000 barrels a day in March, down 9.7% from last month, the document showed. Volumes would have been even lower, were not for cargoes that were delayed in February. Without the cargoes that had been rolled over, Mexican exports would have plunged to around half a million barrels a day.
Pemex didn’t immediately respond to requests for comment.
Pemex officials have said the company will seek to sell more oil to destinations other than the US in coming weeks, when it will tell customers how much oil it will offer for April. Mexican oil production has been in a downward spiral. In January, output fell to the lowest in at least 40 years as oil fields are aging and no significant oil discoveries have been made in the past decade. Quality issues, with high water and salt content, have also plagued production.
bloomberg.com 03 05 2025
