• FALL: Mexico’s state-owned oil company, Pemex, saw its exports of fuel oil reach its lowest point in ten years during 2019, reflecting lower oil refining volumes along with foreign customers beginning to adjust to new international regulations restricting its use by the maritime industry.
• NUMBERS: Recent Mexican government numbers show that Pemex fuel oil exports were 69,200 barrels per day in 2019. The number is well below the 120,700 barrels per day that the company exported back in 2009. Accordingly, export revenues have fallen 47% in ten years.
• LOSS: “We have to look at not producing so much fuel oil because we lose money on it. There are probably some markets that could take this product, but every day it is more difficult”, said Rosanety Barrios, an independent expert on Mexico’s energy sector.
• TREND: Under new regulations from the International Maritime Organization (IMO) ships are required to burn fuel with very low sulfur content. International prices of heavy fuel oil are expected to fall as demand for it declines. Some ships will be able to continue using by installing costly scrubbers.
