Maya formula change for the Western hemisphere
Mexico has incorporated Argus WTI Houston in its pricing formula for exports of its flagship heavy sour crude Maya in the Americas. For the first time in over 20 years, this formula has been updated to better reflect changes in western hemisphere benchmarks, excluding High Sulphur Fuel Oil, in the wake of IMO2020 and low sulphur marine fuel standards, as well as crude oil benchmarks Dated Brent, WTS and LLS.
PMI Comercio Internacional, the trading arm of Mexico’s state-owned oil company Pemex, is the latest government entity to adopt Argus price assessments. Other governments using Argus price assessments include the US SPR, Saudi Aramco, Iraq’s Somo and the tax authorities of Kazakhstan, Norway, Russia and the UK.
Associated PA codes: WTI Houston (PA0016058), Ice Brent (PA0002809), Maya USGC (PA0000156).
Pemex’s Maya crude formulas for Europe, India and the Middle East has also changed to ICE Brent + the K factor.
A better way to hedge the Maya formula. This change enables the market to better hedge the Maya formula, utilizing two highly liquid components. Argus WTI Houston has open interest of over 240mn bl and is the key benchmark for the US Gulf coast, representing Permian-quality WTI arriving by pipeline and traded at Houston, while Ice Brent is a major global futures contract.
How to access Argus WTI Houston and the daily Maya price
Argus publishes the WTI Houston (PA0016058), Ice Brent (PA0002809) and Maya US Gulf coast (PA0000156) prices daily. All daily price and the historical price sets are available through desktop and direct data feed from Argus and industry-standard platforms. Argus also produces a forward curve for WTI Houston.