Outside of strange strategic determinations, Pemex’s crude oil exports are growing, driven by both quantity and price…
A soccer coach who worked in Mexico a few decades ago used to explain that in that sport “whoever does the tactics is the goal.” Transferring the case to the field of economics, it can be said that whoever does the tactics is the price. In that order, despite the strategic objective propagated by the current government of reducing crude oil exports to a minimum to internally refine the input, in a time of rising international prices, hydrocarbon exports by Pemex have shown a notable rebound . Pragmatism or taking advantage of the situation?
According to news, the goal that the authorities had set for themselves was that no more than 800,000 barrels per day be dedicated to the export of crude oil. However, the technical data published by Pemex show that last July the export level of more than 1 million barrels per day was exceeded, which had already occurred in the previous June and also in April of this year. Previously, in January of the current 2022, the strategic goal of 800,000 barrels per day had almost been reached.
This expansion in crude oil exports has continued in parallel with rising prices, driven by rising global demand. In this context, the price of the Mexican mixture started the year at 78.42 dollars per barrel, but from March to July it exceeded the 100-dollar mark and currently stands at 97.57 dollars per barrel. The peak price was reached in June, with the highest record in a decade of 108.84 dollars per barrel. So crude oil exports made by Pemex have been boosted by both the quantity and the price side.
It is almost paradoxical that an actor that in previous market episodes was clearly detrimental to Mexico in terms of oil prices, is currently acting in favor of it. In the fateful year of 1986, the collapse of oil prices was attributed to the supply policy of Saudi Arabia, the main producer within OPEC. In the current situation, this oil power is considering the possibility of reducing its production level in an environment of rising prices. Strange seems that strategy, when oil prices are rising.
