Oil Daily | Mexico Seeks Asian Buyers for Oil Amid US Tariffs; Russia's Revenues Fall on Sanctions

【Oil-Producing Countries Dynamics】

Mexico's state oil firm Pemex is looking to sell its oil to Asia and Europe due to a 25% tariff imposed by the United States. This move comes as Mexico's oil exports have decreased and Pemex seeks new markets, especially as production continues its decline. The Mexican government is in discussions with potential buyers in India, China, and other Asian countries, citing strong demand for heavy crude. Asian refineries are particularly suited to process Mexico's heavier crudes.

U.S. refiners have reduced their intake of Mexican crude, partly due to excessive water content in the oil, with Pemex's Maya crude reportedly having high water and salt content. Pemex's oil imports to the U.S. reached a 35-year low, and the company is working on boosting production despite a reduced budget. Efforts focus on new deposits, particularly in the deep waters of the Gulf.

Russia's oil and gas revenues decreased by 18.4% in February from the previous year due to lower oil prices and new sanctions affecting crude shipments. Russia aims to reduce its reliance on oil revenues to handle volatile market conditions, although it faces challenges in selling its crude abroad due to new sanctions by the U.S.

Germany is exploring ways to prevent the resumption of the Nord Stream 2 pipeline as part of a U.S.-Russia agreement. Secret talks have involved potential American investors buying the pipeline. Despite Russia's claims of Western involvement in past pipeline incidents, Europe's imports from Russia have slightly increased.

【Industry News】

The decarbonization drive might cause $2.3 trillion in stranded oil and gas assets by 2040, according to a UK report. The UK itself risks $141 billion if the transition to net-zero succeeds. The report highlights the disproportionate global economic exposure and emphasizes the continued demand for oil and gas, despite government transitions.

Equinor announced a new gas and condensate discovery in the Norwegian Sea, aiding Norway's natural gas production and exports to Europe. The discovery is located in an area with existing infrastructure, emphasizing Europe's energy security needs. Equinor plans to prioritize oil and gas developments, cutting renewable energy targets.

【Latest Oil Policies】

The U.S. imposed tariffs on Mexican and Canadian imports, leading to concerns about economic growth and energy demand. OPEC plans a partial rollback of production cuts from April, with potential market adjustments based on conditions. Analysts predict short-term bearish trends in oil prices, influenced by technical factors and global economic conditions.

【Company News】

DTEK, Ukraine's largest private energy company, is negotiating with U.S. developers for more LNG imports to Europe. The company aims to replace Russian gas with LNG and is seeking investment to boost renewable energy in Ukraine. DTEK's strategy includes restoring war-damaged facilities and building new power capacity in neighboring EU countries.

【Others】

Egypt is inviting bids for 13 offshore and onshore blocks to boost its oil and gas production. The licensing round targets six exploration areas and seven undeveloped discoveries, part of Egypt's strategy to attract investment and increase domestic output. The Mediterranean region has become a significant focus for exploration, with recent developments by companies like BP.