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Mexico Maya Price Rise Set to Boost Canada Exports to U.S.

Posted March 12, 2015

Under Economic Issues, International Trade Issues

(Robert Tuttle – Bloomberg)

Mexico’s decision to raise the price of Maya crude is seen making Canadian crude more competitive, drawing increased volumes down to the U.S. Gulf Coast.

State-owned Petroleos Mexicanos, known as Pemex, reduced the discount for the heavy crude blend sold into the U.S. to $1.20 a barrel in April from $2.95 in March, the biggest increase in a year. U.S. imports of Canadian crude declined over the month ended March 6 as Mexico’s increased, according to U.S. Energy Department data.

This “definitely opens to door for Canada to make up ground here,” Carl Larry, director of oil and gas for Frost & Sullivan LP in Houston, said by phone.  Click here to read more.