In a statement the national oil company Pemex said that it will begin shipping extra light Olmeca crude oil to customers in Europe this month. The measure is aimed to diversify the country’s export markets which according to the company will be carried out by PMI Comercio Internacional.
PMI Comercio Internacional will be managing the exports for Pemex; however, there is not much information available regarding expected shipment volumes. Currently, Mexico exports an average of 1.18 million barrels per day (bpd) where most of it is heavy crude oil. It has a surplus as it produced 2.52 million bpd which it can export overseas.
India and China are two major oil consumers who depend a lot on the imported oil. In fact, the company is also trying to cash in the golden opportunity by exporting crude to these two countries. In its earlier statement the company even disclosed that it was planning to increase crude exports to growing Asian markets like China and India.
Nonetheless, major portions i.e. close to 80 percent of Mexico’s crude exports are comprised of heavy Maya crude. The country exports this crude to the United States. However, now Pemex thinks that it will resume crude exports from its Salina Cruz port in southern Oaxaca State to U.S. and Asian customers to expand the market and reach.
Brent Halts its Longest Run of Losses
Earlier ForexMinute reported that despite a bad 2013, the crude oil market is expected to fare better this year. Investors are bullish about their investments and returns as they see 2014 will be better for their investments. This now looks plausible as Brent halted its longest run of losses since August.
There are concerns that clashes between Iraq’s government and militants linked to Al-Qaeda may lead to a disruption in oil output; however, that has yet to be seen. On the other hand, futures climbed as much as 0.7 percent in London. Thus, snapping a five-day losing streak, amid fighting in the city of Fallujah and surrounding Anbar province in Iraq, Brent is up.
Iraq is the largest OPEC member after Saudi Arabia in terms of producing oil and any obstacle in production and supply causes a hike in oil prices. WTI or West Texas Intermediate which has been on the decline for quite a lot of time broke its longest run of losses as the coldest U.S. boosts fuel demand.
To contact the reporter of this story: Jonathan Millet at email@example.com