(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.