Prices of heavy sour crude oil grades have been rising in the U.S. Gulf Coast, traders said, as the market braces for a disruption of supplies from Mexico in the wake of a fire that has cut state-run Pemex's oil output by about 25% since Sunday.
are scheduled to receive Mexican crude cargoes in coming days, according to people familiar with the trade.
The accident, which interrupted gas supply needed for oil production at KMZ's fields, increasingly threatens the active flow of Mexican oil, especially Maya crude, to the U.S. Gulf Coast, where many refineries use it as their main source of heavy sour crude.Three traders who are regular buyers of Maya crude for the United States and Europe said they expect a force majeure notice by Pemex if producing wells are no reconnected in the coming days.
A former Pemex executive familiar with KMZ operations said the cluster has oil storage capacity that allows "several days" of autonomy, which could be exhausted before declaring force majeure.
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