U.S. refiners are shifting their focus to rare and niche crude grades from Latin America as imports from Mexico continue to decline. Data from the Energy Information Administration (EIA) shows that crude imports from Mexico fell to their lowest point in decades in 2024.
This drop comes as Mexico’s oil production has been on the decline, and its state-owned company, Pemex, has been prioritizing domestic refining. Under former President Andres Manuel Lopez Obrador’s administration, more crude is being processed at a newly constructed refinery, reducing the amount available for export.
As Mexico’s crude exports to the U.S. diminish, American refiners are increasingly turning to South America for heavy crude oil. Tanker-tracking data highlights the growing role of heavy crude from countries like Peru, where a special grade known as Bretaña is being produced.
Bretaña is a heavy sweet crude, meaning it contains minimal metals, making it a good fit for U.S. refineries. The crude is produced in the Amazon region of Peru and is transported by river to Brazil for export, marking it as a rare and valuable alternative to traditional sources.
U.S. Refiners Turn to Rare South American Crude as Mexican Imports Decline
Bretaña has already made its way into U.S. markets, with the first shipment of 2025 arriving in Houston on January 2 aboard the tanker Radiant Pride. This shipment, which included around 300,000 barrels, demonstrates the increasing demand for Bretaña. The crude’s presence in U.S. refineries has been growing, with previous shipments reaching the U.S. West Coast in 2024. Two cargos were offloaded at facilities operated by Marathon Petroleum and PBF Energy, underscoring the expanding appeal of Bretaña among U.S. refiners.
The decline in Mexican crude exports to the U.S. Gulf Coast has spurred U.S. refiners to seek out new sources of heavy crude. Matt Smith, an analyst with Kpler, commented that this shift in sourcing is expected to continue as refiners look for reliable alternatives. The growing popularity of niche South American crudes, such as Bretaña, is part of this broader trend to fill the gap left by the reduction in Mexican crude imports.
Looking forward, the demand for rare heavy crude grades like Bretaña is anticipated to rise as U.S. refiners adjust to the ongoing changes in the oil market. With Mexico’s exports to the U.S. continuing to fall, South American suppliers, particularly those producing high-quality niche crudes, are becoming increasingly important. This trend of diversifying crude sources is likely to play a significant role in meeting the needs of U.S. refineries in the years to come.
