US assumed part of Mexico’s commitment to reduce oil production

The United States will share Mexico’s commitments and help the country reduce oil production. This was stated by U.S. President Donald Trump.

“Mexico will reduce production by about 100 thousand barrels. This means they are 250,000-300,000 barrels short (to meet the OPEC+ quota),” he said.

Trump said it’s a very large volume for Mexico, but very small for the U.S., so the U.S. leader has agreed to take away the “surplus,” and Mexico will reimburse the obligation later, perhaps somewhere else.

At the same time, the head of the White House noted that the U.S. had already reduced oil production under pressure from the market situation, and if the Mexican authorities had not made concessions, they would have sold oil at “$5-20 per barrel”.

The day before OPEC+ countries confirmed their intention to reduce oil production in May-June by 10 million barrels per day, but only on condition of participation of Mexico, which left the meeting. Later, Mexican President Andres Manuel López Obrador said that the country will reduce oil production by 100 thousand BPD.

By the end of the year the OPEC+ countries will cut oil production to 8 million barrels per day and further to April 30, 2022 – 6 million barrels per day.