LatinNews Daily - 14 April 2020

* Mexico’s state-owned oil firm, Pemex, has reported that the price of Mexican crude oil exports increased by 3.61%, to US$17.16 per barrel, on 13 April. Mexican crude prices had been falling due to the decline in global demand for oil resulting from the coronavirus (Covid-19) pandemic, and the failure by the Organization of the Petroleum Exporting Countries (Opec) and its partners to agree to reduce production. This trend was bucked following the 12 April meeting between Opec and other oil producing countries (including Mexico), in which they jointly agreed to reduce production by 9.7m barrels per day (bpd) between May and June. The agreement was reached despite Mexico’s refusal to agree to reduce its production by 400,000bpd. Mexico was the only country to refuse to lower its production by the stipulated amount, arguing that it could not afford to do so, and offering to reduce production by only 100,000bpd. The impasse was resolved only after the US agreed to further cut down its own production to make up for Mexico’s surplus.

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