Pemex Eyes Asia and Europe as U.S. Tariffs Shake Up Oil Exports

Mexico’s state-owned oil giant Pemex is actively seeking new buyers in Asia and Europe after U.S. President Donald Trump imposed a 25% tariff on Mexican crude imports. A senior government official confirmed that talks with potential buyers in China, India, South Korea, and Japan are underway, as the company looks to offset losses from its largest market.

Pemex exported 806,000 barrels per day (bpd) last year, with 57% going to the U.S. However, exports plunged 44% in January, hitting a historic low of 532,404 bpd. While Mexico already supplies some crude to Europe and Asia, its flagship heavy sour Maya crude primarily goes to U.S. refiners. With tariffs in place, Pemex is shifting focus to regions with a strong demand for heavy crude.

According to Pemex’s trading arm, PMI Comercio Internacional, Asian markets have the refining capacity needed to process Mexico’s crude, making them a natural alternative. China, in particular, has shown high interest, while India and South Korea remain key contenders despite higher shipping costs.

Traders speculated whether Pemex would offer discounts to retain U.S. buyers, but officials dismissed the idea. Once current contracts expire, shipments will be redirected overseas, signaling a significant shift in Mexico’s oil trade dynamics.

Mexico’s oil production has hit a four-decade low, and its domestic refining capacity remains inadequate. Delays in launching the 340,000 bpd Olmeca refinery in Dos Bocas have forced Mexico to continue exporting crude while relying on fuel imports, mainly from the U.S. Without major investment in exploration and production, experts warn that Mexico could even become a crude importer in the future—a dramatic reversal for one of the world’s top oil producers.