On June 6, OPEC and allied nations agreed to extend a production cut of 10 million barrels of oil a day through the end of July, hoping to encourage stability in energy markets hard-hit by the coronavirus-induced global economic crisis ; however, Mexico’s Energy Minister Rocío Nahle announced Mexico will not join the efforts.
Ministers met via video conference to adopt the new measure, aimed at cutting the excess oil production depressing prices worldwide.
Nevertheless, Mexico’s representative, Miguel Ángel Maciel, refused to accept the new agreement. Although Energy Minister Rocío Nahle was not present in the meeting, she said the country had agreed to an output cut for May and June. Nahle said that despite Mexico’s decision, the country has been respectful towards the OPEC and its members.
Recommended: OPEC: Mexico agrees to cut its oil output by 100,000 barrels per day
During a public event in Villahermosa, Tabasco, President López Obrador said Mexico has already complied to cut oil production by 100,000 bpd and that the country is unable to extend the decrease in oil production.
Nahle said that she and President López Obrador were paying close attention to the negotiations.
Since the cuts in output were implemented in early April, crude oil prices have been gaining in recent days, in part on hopes OPEC would continue the cut.
During the previous negotiations, President Donald Trump said the U.S. would help take on some of the cuts that Mexico was unwilling to make.
Recommended: Saudi oil price cuts seen reigniting market share war with Russia
gm
