MEXICO CITY (Bloomberg) -- Mexico isn’t breaking up with U.S. oil refiners, but it sure seems like it wants to see other people.
Mexico reduced its crude exports to the U.S. in September to the lowest level in more than 25 years as it looks further away for buyers with Gulf Coast refiners flooded with shale and oil sands.
Petroleos Mexicanos, the state-owned oil company, shipped 550,000 bpd to the U.S. in September. That’s the lowest level in Energy Ministry records dating back to 1990. It’s the first time since 1992 that less than half of Mexico’s oil exports have gone to its northern neighbor.
“We’ve seen the U.S. really squeeze out a lot of importers,” said Carl Larry, head of oil and gas for Frost & Sullivan LP. “Now Mexico is feeling the pressure, too.”
U.S. and Canada supplied American refineries with 74% of their crude last week, up from less than 50% five years ago, leaving less space for other suppliers.
Instead, Mexico is turning to places like Spain, which took 200,000 bpd in September, and India, which took 166,000. Mexican shipments to China more than doubled from the month before to about 33,000 bpd.
“Pemex has a diversification strategy and exports to countries like Japan, China and India have increased as both a business decision and foreseeing that the U.S. demand could decrease over time,” a Pemex spokesman said by phone.
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