EconomyFinancialHigh crude oil prices boost Pemex's export earnings

High crude oil prices boost Pemex's export earnings

The high international prices of crude oil, which have led the Mexican export mix to be priced above 60 dollars per barrel since the middle of last year, boosted the income of the state-owned Pemex, despite not increasing the volume of crude it ships. abroad.

The state company ended last year with revenues of 24.275 million dollars from oil exports. The figure is very high –68% higher– when compared to a year before, when it added sales of 14,885 million dollars for its shipments abroad.

But 2020 was an atypical year, in which the pandemic dropped demand and prices in a historical way. Fears stemming from Covid-19 and social distancing led the Mexican mix to trade for the first time at a historical price of -2 dollars during April of last year.

In a comparison with 2019, export sales were also higher by 9% or about $2 billion.

The company has made more revenue despite sending less crude abroad. Pemex did not drastically reduce its exports last year, but the decrease has been gradual since before the start of this six-year term, in line with the decrease in production.

But in 2021, the state-owned company registered its lowest export volume since at least 1990, the oldest data for which the state-owned Pemex shows a record, with shipments of 1,103 million barrels per day, a decrease of 9% or 102,000 barrels compared to a year before.

Changes in exports have occurred in its conformation. The company has reduced the shipment of Maya or heavy crude and has prioritized the sale of Istmo or light crude. Pemex resumed shipments of the latter at the end of 2019 after having interrupted it for about 18 months.

While in 2019 only 48,000 barrels were shipped during December, for last year the figure averaged 181,000 barrels and exceeded 230,000 in the last month of 2021. Sources inside the company have explained that the increase in these sales has been mainly due to that the state company has decided to prioritize the use of heavy crude oil in the diets of the refineries, despite obtaining greater amounts of fuel oil.

The company’s plans, announced by the executive, state that Pemex will stop exporting oil in 2023, when the Dos Bocas refinery begins operations and with the idea of significantly increasing the use of the rest of the complexes.

But now the rebound effect of the pandemic, which stems from a significant increase in demand above supply, has pushed the national mix to levels above $80. Yesterday, Thursday, it closed at 87 dollars per barrel, according to Pemex data. And with it, the oil companies, including the Mexican state company, will receive a boost to their income.

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