Europe turns to Mexico for diesel as supply disruptions deepen

Pemex has shipped nearly 300,000 barrels of ultra-low-sulfur diesel to Spain, Bloomberg reports.

Europe is importing diesel from Mexico for the first time in seven years as the war in Iran and a halt in Russian cargoes disrupt established fuel-trade routes, Bloomberg reported.

Mexico’s state oil company Pemex has shipped nearly 300,000 barrels of ultra-low-sulfur diesel to Spain this month, according to Kpler data compiled by Bloomberg.

Mexico is normally a major diesel importer, but high European prices have made exports profitable even if the country must increase its own imports. Diesel traded in New York has more than doubled this year, making it the best-performing commodity globally.

Mexico last exported diesel meeting Europe’s strict road-fuel standards in 2019, according to Kpler data. A compliant cargo reached Italy in July and another was delivered to France in April.

Global diesel-market tightness may continue as Russia considers extending its diesel-export ban to Oct. 1 while drone strikes on refineries persist.

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