Venezuela and Mexico increase their oil sales in the United States due to a bottleneck from Canada
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State oil companies in Mexico and Venezuela, which are in difficulty, have transferred traditionally traded crude oil into their domestic plants to refiners in the United States, which have been affected by transportation restrictions to similar varieties in Canada, according to industry data. 19659002] The situation reflects an unusual set of events, such as the urgent need for liquidity from Venezuela and Mexico to pay debts and investments, in addition to an unmet demand for heavy crude in the United States. United because of the low availability of Canadian oil, said operators and badysts.
The United States imported 1.675 million barrels of crude oil a day in August, the highest level since May 2017, according to Refinitiv Eikon Agency, Reuters .
This increase occurred despite the fact that the Latin American crude oil reference, the Mexican Maya, was about $ 50 per barrel compared to the Western Canadian Select (WCS) because of transportation costs.
More Liquidity
The recent export boom in Latin America is driven mainly by Mexico, Brazil and Venezuela. despite the long decline in oil pumping in most of the region. Over the last decade, oil producers – with the exception of Brazil – have reduced their deliveries, particularly to the United States.
In the case of Venezuela, the state oil company PDVSA "needs cash to be able to pay this month to the 2020 bond holders to amortise ConocoPhillips (following a sentence arbitration), "said Robert Campbell, head of petroleum research at Energy Aspects, citing two big bills to pay in the coming days.
Petróleos Mexicans collect funds mainly to refinance their heavy corporate debt. A rise in sales of its coveted Maya gross could help it restore its refineries, which operate at historically low levels.
