Mexico lags as Latin America’s oil boom reshapes global markets

The closure of the Strait of Hormuz and the ensuing conflict have amplified the strategic role of Latin American oil, with Brazil, Argentina, Guyana and a recovering Venezuela together supplying a larger share of global demand. Mexico stands apart, its crude exports falling to around 500,000 barrels per day, reflecting both reduced production and a policy that prioritises feeding its own refineries. Pemex reported June revenues of about $1.3 billion, up 61.6% from the previous year, but the firm remains burdened by $77.5 billion in debt and a refining business that loses at least $10 billion annually.

The Sheinbaum administration has introduced tax measures to keep gasoline and diesel prices low, sacrificing part of the windfall from oil priced near $80 a barrel. Analysts note that Mexico has not launched new bidding rounds for exploration, unlike its regional peers, limiting its ability to capture the current market upside.