Mexico agreed to cut oil production by the United States
Mexico, which delayed the OPEC + talks for almost a day, will still cut production volumes. However, most of the country’s obligations were assumed by the United States
Mexico has agreed to join the OPEC+ agreement to reduce oil production on the condition of abandoning production of 100 thousand barrels. per day reports Reuters with reference to the country’s President Andres Manuel Lopez Obrador. The United States will take the rest of Mexico’s share in reducing production.
As part of the deal with Mexico, the total reduction will be 350 thousand barrels. per day. “President Trump said that the United States will agree to cut production by 250 thousand barrels. per day in order to compensate for the share of Mexico, ” said Lopez Obrador. According to him, the agreement was reached during telephone talks with the American President.
OPEC+ countries insisted that Mexico reduce the volume of oil pumped by 400 thousand barrels, but the country did not agree to such conditions the day before. Due to the position of Mexico, the final negotiations on the deal were postponed to Friday, April 10. The last voiced demand for OPEC+ was a reduction in production by Mexico by 350 thousand barrels. per day.
The video conference of representatives of OPEC+ member countries and other major oil-producing countries lasted nine hours yesterday. According to its results, the countries previously agreed to cut daily production by 10 million barrels. in May and June. from July 1 – by 8 million barrels. per day, and from January 1 next year until April 2022 – by 6 million barrels. per day.
All countries except Mexico were satisfied with these conditions. A significant part of the commitments to reduce production will be taken by Russia and Saudi Arabia: according to Reuters, Moscow and Riyadh will have to cut 2.5 million barrels per day for each.