Mexico's state-owned company, Pemex, is looking for new buyers in Asia, including China, and Europe. This comes after U.S. President Donald Trump placed tariffs on oil imports. A senior Mexican government official said Pemex is exploring these alternative markets to sell its crude. This week, Trump imposed a 25% tax on goods from Mexico and Canada. However, Canadian crude oil received a lower tax of 10%, while Mexican crude will be taxed at the full 25%. 

Last year, Mexico’s state oil company, Pemex, exported 806,000 barrels of crude oil per day, with 57% of it going to the U.S. In January, exports dropped sharply by 44% compared to the previous year, falling to 532,404 barrels per day—the lowest level in decades. Mexico exports some crude oil to Europe and Asia, especially to India and South Korea, based on Kpler data. However, most of its flagship heavy sour Maya crude goes to the United States. A government official, who wished to remain anonymous due to the sensitive nature of the discussions, said that Pemex has been exploring new buyers outside the U.S. "The good thing is that there's appetite for Mexican crude in Europe, in India, in Asia," they said. "There's demand for heavy crude and Pemex crude." Potential Chinese purchasers were "very interested" in first discussions, the official added, but "demand will decide how these flows are redirected." 

Two sources from PMI Comercio Internacional, the trading arm of Pemex, told Reuters that China, India, South Korea, and even Japan could be good markets for Pemex's oil, despite the higher shipping costs caused by tariffs. One of the traders mentioned that "only Asia" has refineries capable of processing the specific type of crude oil that Pemex produces, making it the best option for selling the oil that can no longer go to the US. Pemex and its trading arm did not immediately respond to a request for comment. For weeks, traders have been guessing whether the world's most indebted energy company would offer discounts to its US customers to keep them amid rising tariffs. However, a government official made it clear that there would be no such discounts. Once the current contracts with US buyers end this month, the company is likely to send its shipments to Asia and Europe instead. 

The official also mentioned that US buyers have not talked about cancelling their contracts. Additionally, two sources from the company's trading division confirmed that there are no plans to lower prices to stay competitive. Meanwhile, Mexico remains a key oil producer, but its older oil fields—mainly in the Gulf of Mexico—have seen production drop to its lowest level in over 40 years. Mexico's outdated refining system and the long-delayed opening of the new 340,000 barrels per day (bpd) Olmeca refinery in Dos Bocas have created a situation where the country exports crude oil but still has to import gasoline and diesel, mainly from the U.S. Without major investment in oil exploration and production, Mexico might even have to import crude oil in the future to keep its growing refineries running—a scenario that was once unimaginable.