Lower Fuel Prices Led to Lower Trade Value Between U.S. and Mexico in 2023: EIA

Energy trade value between the U.S. and Mexico declined by around 15 percent during 2023 compared to 2022, according to a July 15 report published by the U.S. Energy Information Administration. The energy trade value between the two nations during 2023 was recorded at $66.5 billion, adjusted for inflation. Energy trade value largely depends on both commodity prices and the volume of commodity imported and exported between the two countries.

Lower energy trade value during 2023 was impacted by lower U.S. import and export values. The value of U.S. energy exports, adjusted for inflation to Mexico, was 19 percent lower during 2023. The value of U.S. energy imports, adjusted for inflation from Mexico, declined by six percent during 2023.

The U.S. imported higher volumes of crude oil from Mexico during 2023 compared to 2022, however due to the lower oil price the value of U.S. crude oil imports from Mexico declined by four percent during 2023 compared to 2022. U.S. crude oil imports averaged 733,000 barrels per day during 2023, up 15 percent compared to 2022. Global crude oil prices were lower during 2023 compared to 2022, in line with easing geopolitical tensions following the Russian invasion of Ukraine in February 2022. Brent crude oil spot prices averaged $82.41 per barrel during 2023, having averaged $100.94 per barrel in 2022. Mexico did not import any brent crude oil from the U.S. during 2023.

Mexico was the largest export market for U.S. petroleum products during 2023. Petroleum products accounted for 87 percent of the total energy exports from the U.S. to Mexico. Mexican demand for U.S. petroleum products has been high, due to Mexico’s ageing refinery system and finds it difficult to maintain the output required to meet its domestic petroleum product demand. The volume of U.S. petroleum product exports increased, however the value of the exports declined, adjusting for inflation, declining to $36 billion in 2023, compared to $40 billion during 2022.

The U.S. exported a record 6.2 billion cubic feet per day of natural gas to Mexico during 2023, up eight percent compared to 2022. Despite the higher volume exported, the trade value of natural gas declined by 52 percent from 2022, due to lower natural gas prices.