According to foreign sources on April 8th, market insiders reported that Mexican national energy company Pemex plans to reduce crude oil exports by at least 330,000 barrels per day in May, which will reduce crude oil supply to customers in the United States, Europe, and Asia by 1/3.

This plan was proposed after Pemex ordered the cancellation of exports of 436,000 barrels per day of Maya crude oil, Isthmus crude oil, and Olmeca crude oil to its trade department PMI Comercio International this month, as the company aims to achieve energy self-sufficiency and needs to supply more crude oil to domestic refineries. After crude oil production dropped to its lowest level in 45 years in February, the Mexican oil company had no choice but to reduce exports every month, and the country's refineries, including the new facility located in the port of Dos Bocas, began to receive more crude oil. Official data shows that it is expected that the port of Dosbokas alone will require 179,000 barrels of crude oil per day this year.

Market insiders say that last weekend, a major offshore platform in the Gulf of Mexico caught fire, which also means that Pemex had to stop production of several oil wells. It is currently unclear how much crude oil production will be reduced as a result. Pemex's crude oil export volume last year was 1.03 million barrels per day, compared to 945,000 barrels per day from January to February.

The Mexican Ministry of Energy predicts that domestic processing volume will increase from 713,300 barrels per day in 2023 to an average of 1.04 million barrels per day this year, thereby reducing the amount of crude oil available for export for the remaining time of the year.

Market insiders say that the expected reduction in production in May is between 10 million and 14 million barrels (total). Despite the significant reduction in production and the expected monthly decrease starting from April, Pemex's trade department has not announced any force majeure in the supply contract.

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