“We have informed the Opec members of our position…we cannot adjust our production any more,” President Andres Manuel Lopez Obrador told reporters this morning.
Lopez Obrador’s comments confirm Mexico’s position as reported by Argus on 22 May.
Opec+, which is comprised of Opec members and allied oil producers led by Russia, will meet tomorrow to consider further action to rebalance the global oil market following three months of turmoil caused by the Covid-19 pandemic and a price war between Riyadh and Moscow.
In April, the Opec+ group agreed to cut output by 9.7mn b/d in May and June, with reductions gradually scaling down to 5.8mn b/d until conclusion of the deal in April 2022.
Mexico agreed to cut 100,000 b/d in May and June — from a 1.75mn b/d baseline — with the US government loosely committing to reduce by an additional 250,000 b/d during that period to compensate for the deeper cut that Mexico resisted.
Mexico will restore normal output levels starting in July.
“We have closed wells to comply with the commitment we made…it can be verified that there was a reduction of 100,000 b/d,” Lopez Obrador said.
Mexico’s state-owned Pemex cut production to 1.53mn b/d in May, some 123,000 b/d lower than the 100,000 b/d cut agreed as part of the Opec+ deal, according to regulatory data.
Energy minister Rocio Nahle will participate in tomorrow’s meeting.
Although Mexico’s contribution to the April agreement was negligible, the non-Opec country’s participation was seen as validating a broad-based commitment by producers to realign the market.
Staff ARGUS. (2020). Mexico reaffirms plan to restore oil output from July. USA. ARGUS. Recuperado de
