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UpstreamOnline: Dean hits Mexico oil exports

By Upstream staff

A major US refiner cut runs and other buyers expected to see supply delays after Mexico was forced to shut in 80% of crude production due to Hurricane Dean.

Anglo-Dutch supermajor Shell reduced throughput at its Deer Park refinery joint venture with Mexico’s Pemex after the state oil company shut in 2.65 million barrels per day of production before Hurricane Dean ripped through the nation’s Campeche Sound oil-producing region.

Citgo Petroleum, another buyer of Mexican crude, said it expected delays in deliveries. Valero and ExxonMobil said they did not expect any problems.

Pemex said it would begin to restore output on Friday and that operations would be at 80% by early next week if there was no major damage from Dean, Reuters reported.

“Shell Oil Company has reduced rates at the Deer Park Refinery in anticipation of an interruption in crude oil supply due to Hurricane Dean,” Shell said.

“There is the potential for delayed oil shipments due to the weather so we are monitoring the situation to determine its potential impact on our operations.”

http://www.upstreamonline.com/live/article139222.ece

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