Fairplay: PEMEX Stabilises Production

“PEMEX has halted its production slide and is spurring more long-haul tanker business, according to Poten & Partners.  In a research note, Poten asserted that ‘as the world’s seventh-largest oil producer, PEMEX has managed to slow a dramatic decline in production’. ‘Historically, additional Mexican output would imply higher short-haul voyages to the US Gulf refiners, who have traditionally run heavy Mexican grades. But rising Spanish, Chinese and Indian refiner interest in Mexican crudes are adding to tanker demand,’ reported Poten.  It pointed out: ‘Mexican export tonne-miles jumped by 11.1% year over year in 2011, on higher non-US liftings, and are running 8% higher in 2012.’ PEMEX disclosed on 21 September that it had produced 2.55M barrels per day in August, versus 2.523M b/d in July. ‘PEMEX crude oil production is now flat with last year’s output, and with the Atlantic hurricane season winding down, the prospects for maintaining production in September are favourable,’ said Poten. It concluded that ‘Mexican liquids output has stabilised and is showing signs of potentially rising.”