Mexico proposes to reduce oil production by 100,000 barrels per day

Mexican Energy Minister Rocio Nale said the country proposed to reduce oil production by 100 thousand barrels per day over the next two months as part of a new OPEC+ deal. She said this on Thursday night in her Twitter account.

This measure, according to the minister, should help stabilize oil prices.

Early on Mexican delegation left the OPEC + meeting on the issue of new reduction of oil production and market stabilization. Country refused to reduce production by 400 thousand barrels per day from the level of October 2018.

OPEC+ countries confirmed their intention to reduce oil production by 10 mn barrels per day in May-June as a result of negotiations that started on Thursday, April 9. Further, by the end of the year the OPEC+ countries will reduce production by 8 mn barrels per day, and further, by April 30, 2022 – 6 mn bpd. At the same time, it is emphasized that all these agreements will be valid with the consent of Mexico.

The negotiations will continue on Friday afternoon. Then, as specified in the statement, OPEC+ member countries will meet on June 10 to determine further actions to stabilize the market.

In case the agreement is implemented, Russia and Saudi Arabia will have to produce 8.5 million barrels per day in May-June.

On March 6, the OPEC+ countries did not agree on the reduction of oil production. As a result, the deal broke down. Later, the media reported that Saudi Arabia plans to increase production to 10-12 mn barrels per day and reduce prices for its oil. A few days later, oil markets collapsed by 30%, the ruble fell markedly against the bi-currency basket, and shares of Russian companies began to lose their positions.