Pemex issued the following announcement on Oct. 17.
Recent developments in hydrocarbon production, changes in global environmental regulations and other global aspects have generated greater volatility in the components of the formula currently used to determine the price of Mayan crude oil in some regions where It is marketed. Consequently, after an exhaustive analysis and evaluation of the market, PMI Comercio Internacional SA de CV, a subsidiary of Petróleos Mexicanos, established new Official Sale Price Formulas for Mayan Crude Oil marketed in the regions of America, Europe, India and the Middle Oriente, which will come into effect from December 2019.
In the case of the Americas and the Caribbean region, the new formula for the price of Mayan crude oil is:
P. MAYA = 0.65 WTI HOU + 0.35 ICE BRENT + K
For the region of Europe, India and the Middle East, the new Mayan crude oil price formula is:
P. MAYA = ICE BRENT + K
"P. MAYA ” means the price of Mayan crude oil in US dollars per barrel;
“WTI HOU” means the arithmetic average of the high and low prices of the West Texas Intermediate Crude in Houston (WTI Houston month 1 - Houston close - Argus Media Code: PA0016058), published by Argus Media, in US dollars per barrel;
“ICE BRENT” means the closing price of the day of the Brent Crude Futures contract for the first month (Brent Crude Futures), published by the Intercontinental Exc hange (ICE), in US dollars per barrel;
"K" means the adjustment for quality and market conditions for each region, expressed in US dollars per barrel.
The new formulas in the aforementioned regions are aimed at providing greater stability to the value of Mayan crude oil in the international market. With these changes, Petróleos Mexicanos continues to strive to maintain a competitive market price for Maya crude oil.
Original source can be found here.