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296 comments on DrumBeat: July 7, 2008

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FTX on July 7, 2008 - 1:55pm Permalink | Subthread | Parent | Comments top

I guess you must be wondering how Pemex is ever going to be able to fulfil its contracts to Shell's Deer Park and Valero's Port Arthur refineries.

Pemex Cuts Crude Supply to Shell, Valero Refineries in Texas

July 7 (Bloomberg) -- Petroleos Mexicanos, Mexico's state- owned oil company, reduced the amount of crude oil it supplies to Texas refineries operated by Royal Dutch Shell Plc and Valero Energy Corp. as falling production curbs exports.

The guaranteed amount of Mayan oil for a Deer Park, Texas, refinery jointly operated with Shell, Europe's biggest oil company, was cut by 15 percent, the Mexico City-based company said in a regulatory filing. Pemex also lowered oil supplies by 5.8 percent to the Port Arthur, Texas, refinery of Valero, the largest U.S. refiner.
[...]
The revised Shell accord guarantees 170,000 barrels a day of Maya from May until 2023, Pemex said in the filing. Pemex provided Deer Park 200,000 barrels a day since April 2001.
[...]
Pemex also reduced the supply to Valero's Port Arthur refinery to 177,000 barrels a day in May from 188,000 barrels under a previous contract.

Bloomberg

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mcgowanmc on July 8, 2008 - 9:56am Permalink | Subthread | Parent | Comments top

Wonder what the penalties are?

And BTW, I looked back to June 26 when the Cantarell production drop was released.

UPDATE 1-Mexico Cantarell oil field output falls again in May ...
MEXICO CITY, June 26 (Reuters) - Crude output from Mexico's struggling Cantarell oil field fell in May for the eighth month in a row to 1.038 million ...
www.reuters.com/article/bondsNews/idUSN2635951620080626

and remember that not a word was said anywhere about it then.

And remember several people on a couple of forums asking why crude
was moving up $5 per bbl.

Reasons given then:

The lower dollar had ramifications for commodities, sending gold to a one-month high. Oil closed up $5.09 at $139.64 a barrel as Libya threatened to cut output and Opec’s president said crude could hit $170 a barrel this summer.

http://www.ft.com/cms/s/0/aa569976-43a4-11dd-842e-0000779fd2ac.html

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296 comments on DrumBeat: July 7, 2008

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