Pemex changes Maya crude pricing formula

Mexico's state-owned Pemex has changed the pricing formula for its heavy sour Maya crude, moving away from high-sulfur oil (HSFO) as a key component.

The formula to take effect in December will be based on Argus' WTI crude Houston assessment, the Ice Brent contract price and Mexico's K-factor, an adjustment factor set by Pemex according to market or quality conditions.

"The recent evolution of hydrocarbons production, changes in environmental regulations at an global level and other international aspects had generated greater volatility in the components of the formula," Pemex said.

Prices for HSFO have been volatile ahead of International Maritime Organization environmental regulations that take effect on 1 January. They will require ships to use fuels that burn more cleanly than HSFO or install special equipment.

Market participants have said for several months that they understood that the company was considering a change to the pricing formula.