Mexico Oil Swap

by Alain on May 1, 2015
Mexico Oil Swap

U.S. is swapping 100,000 gal. of light crude oil to Mexico for same amount of their heavy crude oil. We will refine the Mexican heavy crude for our use and Mexico will sell our light crude overseas. Article states that this is a response to OPEC continuing to pump oil. Not sure about that. Mexican national oil company, Pemex, lost $8.6 billion in the first quarter. Pemex contributes 1/3 of Mexico's tax revenue. So this looks like a way to get cash into Mexico. Article also states that Congress should change law on stocking of Strategic Petroleum Reserve such that only oil from a swap with Mexico will be used. Ummm, No. No reason for that.

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