Global politics made an impact on Mexico’s oil prices this week as the US-China trade war was reignited. Nationally, SENER announced that Dos Bocas will bring a financial return to Mexico with five of six construction packages awarded.
Don’t miss this week’s Interview of the Week with Michael Ross, Vice President and Country Manager Mexico at Kiewit. We discussed the company’s Puerto Progreso storage terminal and the company’s strengthening position in Mexico. Take a look, here.
Mexican Mix Hit by Renewed US-China Trade War
The decision by US President Donald Trump to reignite a trade war with China by imposing additional tariffs from September 1. has caused the price of Mexican Crude Basket export oil price to drop 9.42 percent. On Thursday, the Mexican mix was quoted at US$55 per barrel.
The president’s decision has caused trouble for oil prices worldwide, with the Brent crude oil price dropping 7.17 percent to close Thursday with a per barrel price of US$60.50.
SENER: Dos Bocas Financially Viable
Minister of Energy (SENER) Rocío Nahle announced this week, in contrast to the opinions of critics, that the construction of the Dos Bocas refinery is financially viable for Mexico. According to the Ministry of Energy, the refinery will offer an internal rate of return of 13.46 percent.
Five of Six Dos Bocas Contracts Construction Packages Awarded
SENER has awarded four of the five construction packages that will be granted ahead of the building of the new Dos Bocas refinery.
Three companies ICA Flour, Samsung Engineering, and Kellog Brown and Root (KBR), have won the five contracts, with a total value of the contracts is US$349.23 million.
PEMEX Reduces Operating Losses Despite Lower Sales
PEMEX has reduced its operating losses in annual terms by 67.6 percent through the combination of reduced financial losses and the lower tax burden introduced to the company. The welcome milestone was achieved despite a fall in domestic fuel sales and crude exports.
Mixed Start for Vista Oil and Gas on NYSE
Vista Oil and Gas suffered a poor introduction to the New York Stock Exchange with its initial US$9.25 share price falling 15 US cents by closing time. However, prices rallied on Monday, with Vista stocks rising 9.89 percent in value and closing the day at a price of US$10.