Shell, Valero Unfazed So Far By Mexico Oil Export Slump
MEXICO CITY -(Dow Jones)- Two oil refiners in the U.S. that traditionally buy crude oil from Mexico have said they can get crude from other sources, as Mexican exports have slumped this year.
Mexico’s average crude exports plummeted 17.3% to 1.46 million barrels a day during the first five months of the year compared to the year-ago period, contributing to record oil prices.
Royal Dutch Shell Plc (RDSA) is receiving Mexican crude oil at or above levels stipulated in its contract with Petroleos Mexicanos, or Pemex, at its Deer Park, Texas, refinery, Shell said in an email Monday. Shell spokesman Destin Singleton said the refinery also receives crude from other sources.
Valero Energy Corp. (VLO), which buys Mexican Maya crude for several of its refineries, said it is closely monitoring the decline in Petroleos Mexicanos’ oil exports. But despite the decline, a Valero spokesman said it is having no problems running its refineries and can use other grades of crude as a substitute for Maya.
Mexican financial news service Infocel reported on Monday that Pemex has reduced supplies to Deer Park by 15% and to Valero’s Port Arthur, Texas refinery by 5.8%. A Pemex spokesman said the company has had to curb supplies to its foreign clients because it has given priority to the domestic refining network, but didn’t specify who is getting less oil.
-By Peter Millard, Dow Jones Newswires; 5255-5001-5724; peter.millard@ dowjones.com
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(END) Dow Jones Newswires 07-07-08 1909ET Copyright (c) 2008 Dow Jones & Company, Inc.
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