Mexico’s $20 billion Dos Bocas refinery, built for energy independence, is finally reducing fuel imports. U.S. fuel exports to Mexico hit 16-year lows as all Pemex refineries ramped up production. Mexico’s crude exports have dropped amid the refinery revival, impacting U.S. refiners who rely on Mexican heavy crude.

The Obrador administration’s plan is working, but U.S. refiners are feeling the pressure. Mexico’s crude exports have decreased significantly, with Pemex’s Maya grade dropping by 86%. Although Mexico’s refineries are operating below maximum capacity, they are showing improvement from previous years.

Mexico’s focus on domestic oil processing is curbing crude oil exports and fuel imports. U.S. refiners will eventually feel the impact, but for now, Venezuelan crude remains crucial. Canada’s shift towards Asian oil exports adds another layer to the changing dynamics in the oil market.

By Charles Kennedy for Oilprice.com.

Read more at Yahoo Finance: Mexico’s Dos Bocas Refinery Starts Biting Into U.S. Fuel Exports