• 4 minutes China goes against US natural gas
  • 12 minutes WTI @ 67.50, charts show $62.50 next
  • 15 minutes Saudi Fund Wants to Take Tesla Private?
  • 1 hour Downloadable 3D Printed Gun Designs, Yay or Nay?
  • 18 mins Peak Oil is Now!
  • 12 hours Rattling With Weapons: Iran Must Develop Military To Guard Against Other Powers
  • 41 mins Russians hacking vs U.S., Microsoft President: Russians Targeting All Political Sides
  • 56 mins Corporations Are Buying More Renewables Than Ever
  • 7 hours VW Receives Massive Order Of 1,600 All-Electric Trucks
  • 15 hours Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 19 hours CO2 Emissions Hit 67-Year Low In USA, As Rest-Of-World Rises
  • 22 hours The EU Loses The Principles On Which It Was Built
  • 12 hours Batteries Could Be a Small Dotcom-Style Bubble
  • 22 hours Film on Venezuela's staggering collapse
  • 21 hours Saudi PIF In Talks To Invest In Tesla Rival Lucid
  • 18 hours Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
Why Mexico’s Oil Production Could Fall Even Further

Why Mexico’s Oil Production Could Fall Even Further

Mexico’s oil production has fallen…

All-Time Low Spare Capacity Could Send Oil To $150

All-Time Low Spare Capacity Could Send Oil To $150

Many oil markets watchers have…

Latin America Expected to Boost Oil Imports from the US

Latin American economies have benefitted from relatively strong economic growth over the past several years growing their middle class and leading to an increase in fuel demand. However, a lack of refineries in the region to produce oil products domestically has created the need to boost imports from the US.

According to Bloomberg, in 2013 traders booked for tankers to send a total 19 million tonnes of fuel from the US to ports around Latin America, a 5.4 percent increase from the year before. This figure is expected to increase again this year as demand continues to rise, and refining capacity is expected to stay the same.

Economic growth in Latin America did slow last year, but it still manages to outpace the rest of the world. The World Bank reports that the constant economic expansion has helped to lift over 50 million people out of poverty, meaning that the middle class now out numbers the poor for the first time ever.

Related article: Lifting the Oil Export Ban: Where the Refiners Stand

Bloomberg calculates that Latin American economies will expand a combine 2.9 percent in 2014, up from 2.38 percent in 2013, and 2.85 percent in 2012. At the same time the world economy is expected to grow by 2.87 percent this year, up from 2.03 percent in 2013.

Rodrigo Favela, the executive director for refining, planning, and evaluation at Hart Energy, stated that “demand in Latin America will keep expanding this year amid a growing middle class. I wouldn’t be surprised to see another year of record imports.”

Over the past five year Latin American refiners, such as Petroleos de Venezuela and Petroleo Brasileiro, have doubled their volumes of US imports.

In 2013 Latin America’s top 12 economies took about a third of all US petroleum product exports. Brazil, Mexico, Argentina, Venezuela, Chile, Colombia, Ecuador, Peru, Honduras, Guatemala, Costa Rica, and the Dominican Republic imported a total 1.36 million barrels a day, more than double the 657,000 barrels a day imported in 2008.

By. Joao Peixe of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News