Mexican state oil company Pemex is in discussions with potential buyers in Asia, including China, and Europe as it seeks alternative markets for its crude following the imposition of tariffs by US President Donald Trump, a senior Mexican government official has said.
Trump this week imposed 25% tariffs on goods from Mexico and Canada. While Canadian crude oil received an exemption with a 10% levy, Mexican crude is set to be taxed at the full 25%.
Pemex exported an average of 806,000 barrels per day (bpd) of crude last year, with 57% of that volume going to the US. However, in January, exports fell by 44% year-on-year to 532,404 bpd, marking the lowest level in decades.
Although Mexico already exports some crude to Europe and Asia—particularly to India and South Korea, according to Kpler data—the US has traditionally been the main recipient of its flagship heavy sour Maya crude.
Speaking on the condition of anonymity due to the sensitivity of the talks, the government official said Pemex had been in discussions with potential new buyers outside the US.
“The good thing is that there’s appetite for Mexican crude in Europe, in India, in Asia,” the official said. “There’s demand for heavy crude and Pemex crude.”
They added that initial conversations with potential Chinese buyers had shown strong interest. “Demand will decide how these flows are redirected,” the official said.
Two sources at PMI Comercio Internacional, Pemex’s trading arm, confirmed to Reuters that China, India, South Korea, and even Japan could serve as viable markets for Pemex’s crude despite higher shipping costs.
One of the traders said, “Only Asia could take the volume that was not sent to the US,” citing the presence of refineries capable of processing the specific type of crude oil Pemex produces.
Pemex and its trading arm did not immediately respond to a request for comment.
For weeks, traders have speculated on whether Pemex, the world’s most indebted energy company, would offer discounts to its US clients to retain them amid the tariffs. However, the government official ruled out such a move, stating that once current contracts with US buyers expire this month, shipments would likely be redirected to Asia and Europe.
The source also noted that US buyers had not yet discussed terminating their contracts.
Faridah Abdulkadiri
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