Mexican Refining Boom Threatens US Refineries Amid Weaker Demand

Mexican refineries have increased production to their highest level in a decade, threatening US refineries as demand from their largest buyer, Mexico, declines. US refineries, including Valero Energy Corp., Marathon Petroleum Corp., and Exxon Mobil Corp., face challenges with high gasoline and diesel reserves. Pemex's resurgence in production is due to the launch of the Dos Bocas refinery and a new cracking unit at Tula refinery. However, it is unclear if Pemex can maintain high production levels, as equipment is prone to failure under high demand.