• FUEL: Mexico’s state owned oil company Pemex doubled its production of high-sulfur fuel oil in February from the same month last year to 248,000 barrels per day. This is its highest point since May 2017 and it accounted for 33.7 percent of total production in Pemex’s six-refinery system.
• REFINING: The rise in fuel oil production is in line with the increase in crude oil processing at Pemex’s refineries during the same period. According to Energy Ministry’s figures, the Salina Cruz refinery in the southern state of Oaxaca produced the most crude oil in the system (65,000 b/d).
• PLENTY: “To the extent that the rehabilitation (of state-owned refineries) promotes the recovery of crude oil production, fuel oil production will grow…which will increase the difficulties for placing it both in the domestic and international markets”, said Ramón Pech, an expert in the refining industry.
• RULE: Under a new rule implemented in 2020, the International Maritime Organization (IMO) banned the use of fuel oil with more than 0.5 percent sulfur in ships. According to company information, Pemex’s refineries fuel oil production averages 4 percent sulfur content.
