Mexico Is Betting on Biofuel to Tackle Its Seaweed Crisis

Over the past 15 years, Mexico has faced a severe seaweed problem, with vast quantities of a brown seaweed known as sargassum washing up on beaches along the Caribbean coast and hitting the tourism industry hard. Researchers are yet to find an effective way to prevent the seaweed from washing ashore or to effectively predict its movement. As the Mexican government attempts to manage the huge quantities of seaweed each year, researchers are exploring potential uses for the algae, such as biofuel or fertiliser. As much as 9,000 tons of seaweed is…

Refining & Products Context

Downstream margins — or crack spreads — have experienced considerable volatility as refinery operators navigate feedstock cost fluctuations, product demand seasonality, and evolving fuel specifications. Gasoline and distillate margins serve as key profitability levers for integrated refiners.

Refinery utilization rates, particularly in the U.S. Gulf Coast and Northwest European hubs, directly influence product availability and pricing. Unplanned outages, scheduled turnarounds, and weather-related disruptions are recurring factors that tighten regional product supply.

What to Watch

Key metrics to watch include refinery utilization rates, weekly distillate inventory builds or draws, and crack spread movements, which serve as real-time indicators of refining profitability across major processing hubs.