Mexico is poised to receive more US Gulf coast refined products because of the Colonial pipeline shutdown.
The shutdown – which was caused by a ransomware attack – trapped gasoline, diesel and jet fuel at the US Gulf coast while cutting off consumers from new supplies along the Atlantic coast.
Mexico is the top outside outlet for US Gulf coast refiners seeking buyers for fuel which is stranded by the shutdown, although this is not without some storage and arbitrage constraints.
Fuel supply along the east coast is expected to be replenished by large volumes of European and Mideast Gulf gasoline, but Gulf coast refiners face a lack of outlets while outright prices have continued to climb.
Mexico, typically the largest buyer of US Gulf coast gasoline, is prepared to take more products, but not without discounts and only limited volumes.
PMI, state-owned Pemex’s international trading arm, would be the top importer bringing fuel into the country.
Santiago Arroyo, head of retail and trading company Ursus Energy, confirmed that the company’s storage units are currently operating at 60-70 percent of its 21m bl capacity.
Arroyo said: “Whatever the circumstances, PMI has and will take the offers, even if it can only take 70-80 percent of what they are offering.”
For more information visit www.pemex.com
