Why Mexico Changed Its Flagship Crude Formula

Mexico and IMO 2020, what a tremendous pairing. The Mexican national oil company PEMEX has been one of the few lucky free-riders of the US sanctions frenzy that saw most of Iranian and Venezuelan exports eliminated from the world markets. With heavy sour barrels rare and difficult to get, Mexico’s sulfurous crudes have become a sought-after commodity, both in the US Gulf Coast and Far East Asian demand hubs. Yet IMO 2020 might cut short PEMEX’s easy ride of the past couple of months, biting a chunk out of its refinery economics and…