Pemex Cuts Crude Supply to Shell, Valero Refineries in Texas

(Bloomberg) — Petroleos Mexicanos, Mexico’s state- owned oil company, reduced the amount of crude oil it supplies to Texas refineries operated by Royal Dutch Shell Plc and Valero Energy Corp. as falling production curbs exports.

The guaranteed amount of Mayan oil for a Deer Park, Texas, refinery jointly operated with Shell, Europe’s biggest oil company, was cut by 15 percent, the Mexico City-based company said in a regulatory filing. Pemex also lowered oil supplies by 5.8 percent to the Port Arthur, Texas, refinery of Valero, the largest U.S. refiner.


“We have not had any problem supplying any of our refineries with crude oil,” Bill Day, a Valero spokesman, said today in a telephone interview from San Antonio. “We don’t usually comment about contracts to specific refineries.”

Falling oil output is curbing Pemex exports to the U.S., which buys about 80 percent of the crude Mexico sells abroad. Sales to the U.S. dropped to 1.07 million barrels a day in May, the lowest since November 1995. Mexico is the third-biggest supplier of crude to the U.S., after Canada and Saudi Arabia.

Bloomberg