Puerto Vallarta (PVDN) – Argus consultancy reported that the arrival of a Russian ship at the port of Guaymas, in Sonora, Mexico, could create a new point of friction between Mexico and the United States. This will be the first Russian ship to anchor in Mexico since a ceiling was imposed on the price of Russian crude oil. The ship, named Loukas I, will carry around 145,400 barrels and is expected to arrive on March 30th. The vessel left Novorossiysk in Russia and made a stopover in Spain, according to Vortexa analysis firm.
Although the company stated that the ship is carrying urea ammonium nitrate (UAN), the Loukas I agent said that it is carrying ultra-low sulfur diesel. This difference suggests that there may have been some mixing in a third country like Spain, as the European Commission’s price cap guidelines state that an oil product will no longer be considered of Russian origin if blending operations in a third country involving oil products result in a different product with a different customs code.
Argus revealed that Russian diesel exporters have been more successful in selling their products in March due to higher discounts. This has led to significant shipments from Russia to the Middle East, West Africa, transatlantic to Brazil, and now to Mexico. The consultancy firm stated that the “cheap” crude supply to Mexico could help its public finances as the Government of Mexico aims to keep price increases for gasoline and diesel below the inflation line. Cheaper supply from Russia could ease the pressure on Mexican finances, which has come at the expense of expensive subsidies.
Despite the sanctions imposed by the European Union that deprived Moscow of its largest oil market, Russia’s diesel exports are on track to hit a record in March. Some shipments from Russia are being held in floating storage. Diesel-type fuel shipments from Russia during the first 19 days of March were around 1.5 million barrels per day, indicating that this month will see the highest exports since early 2016.
