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Bloomberg
Mexico slashed the price for its flagship Maya crude, the latest producer to discount its cargoes as the coronavirus pandemic destroys fuel demand and Saudi Arabia floods the world with crude.
Petroleos Mexicanos’s trading arm PMI lowered its Maya crude differential into US Gulf Coast by $2 to minus $10.05 a barrel for April, PMI said. The so-called K factor is applied to benchmark crudes to adjust for market conditions.
Oil prices have been ravaged by the threat that the spread of coronavirus across the world may cause demand to collapse by as much as 20 million barrels a day as drivers stay home and flights are grounded. The plunge was exacerbated by a price war between Saudi Arabia, Russia.