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Mexico refuses to participate in OPEC + agreement to extend oil production cuts

On Saturday, Mexico refused to extend oil production cuts until the end of July, agreed by OPEC members and other major producers yesterday (OPEC +).

On Saturday , OPEC + agreed to extend the historical production cut by 9.7 million barrels until the end of July.

But Mexican Energy Minister Rossio Nali, during a visit to a petrochemical station in Veracruz state, told reporters that Mexico would not commit to the cut. “Some countries extended the deduction until July … We said no, we will continue to abide by the agreement signed in April,” she said. no problem”.

She added that Mexico “fully committed” to the basic agreement, which cut production by one hundred thousand barrels per day in May and June, but other countries “did not respect the agreement”, without specifying those countries. She noted that Mexico had informed its partners of its position before the start of the negotiations on Friday morning.

The OPEC + group, made up of members of OPEC +, agreed in April to reduce the supply by 9.7 million barrels per day in May and June to support prices, and under the agreement Mexico pledged to reduce production by 100,000 barrels per day in May and June. Resisting pressure from other oil producers to cut 400,000 bpd.

Under the April agreement, OPEC and its partners within the OPEC Plus alliance pledged to cut production by 9.7 million barrels per day from May 1 to the end of June.

The reduction was supposed to be reduced to 7.7 million barrels per day between July and December.

Algerian Energy Minister Mohamed Arqab said yesterday that the planned reduction for July is 9.6 million barrels, which is 100 thousand barrels less than the reduction in May and June.

Mexican President Andres Manuel Lopez Obrador warned Friday that Mexico “can no longer adjust its production any more” and said that some countries have not complied with the agreement.

Crude prices fell dramatically as demand slumped due to the shutdown imposed in the world on the back of the emerging Corona virus outbreak.

Oil provides a fifth of Mexican export earnings. The state-owned oil company, Pemex, is facing major problems, as its net losses in the first quarter of the year amounted to $ 23.5 billion.