Mexican oil production is projected to decline to levels not seen since the late 1970s, prior to the development of the Cantarell field, reaching a 46-year low. Between October 2024 and April 2025, output fell by 160,000 barrels per day, an 8% decrease, coinciding with a 60% reduction in drilling rig activity. This decline poses challenges for U.S. refiners who rely on Mexico's heavy crude, especially as exports drop and Pemex, Mexico's state oil company, faces mounting debt. In response, the Mexican government announced a financial operation worth $9.5 billion to support Pemex, including the issuance of bonds intended to improve liquidity without increasing debt. Fitch Ratings has placed Pemex's credit rating on positive watch, signaling a potential upgrade from its current speculative B+ rating. However, Standard & Poor's Global indicates that the government aid does not cover all of Pemex's short-term financial and operational liabilities, suggesting the company may still face a cash deficit. Meanwhile, U.S. Gulf Coast residual fuel oil inventories have fallen to their lowest since January 1990 due to decreased domestic production and limited heavy feedstock availability. Oil product inventories in Fujairah increased by 971,000 barrels week-on-week, while Singapore saw a slight decrease in oil product stocks.