April 20, 2021, 7:06

Mexico to Stick to April OPEC+ Deal, Setting Production Cuts Until June, Energy Secretary Says

Mexico to Stick to April OPEC+ Deal, Setting Production Cuts Until June, Energy Secretary Says

BUENOS AIRES (Sputnik) – Mexico has confirmed its commitment to the OPEC+ deal reached in April, which stipulates oil production cuts for Mexico for May-June only, the country’s Secretary of Energy, Rocio Nahle Garcia, said after the Saturday meeting of oil producers.

“The Government of Mexico maintains its readiness for dialogue and confirms its position on the agreement signed last April,” Mexico’s Energy Secretary wrote on Twitter.

OPEC+ oil producers reached an agreement on 12 April to collectively reduce oil production by 9.7 million barrels per day (bpd) for two months, starting from 1 May. The deal stipulated that production would be cut by 7.7 million bpd for 6 months after that, until 31 December. Starting from January of next year until April 2022 oil production would be reduced by 5.8 million bpd.

The oil production of October 2018 was taken as the baseline for calculating the adjustments for all countries, except Russia and Saudi Arabia, which would have their own baseline, 11 million bpd, and would account for the largest reduction.

Under the April deal, Mexico was said to have its own separate quota for the May-June period, namely 100,000 bpd, while the remaining 300,000 bpd would be compensated for by US reductions.

Source: sputniknews.com

Related posts