Pemex’s Trading Arm Declares Force Majeure on U.S. Gasoline Imports
- Fuel glut builds offshore with vessels waiting to discharge
- Fuel consumption has fallen by as much 50% during pandemic
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Mexico, the largest recipient of U.S. gasoline exports, is seeking to cancel imports of the fuel from at least one U.S. company amid the rippling effects of the coronavirus on demand.
Petroleos Mexicanos’s trading unit, PMI, declared force majeure on imports of gasoline as an armada of vessels unable to discharge the fuel idles on the Atlantic and Pacific coasts, according to a person with knowledge of the situation who spoke on condition of anonymity because the information is confidential. The legal term “force majeure” typically describes an unexpected, external event that makes it impossible for a party to fulfill its obligations under a contract.