Mexico says it has fulfilled its obligations under the OPEC deal+

Mexico has fulfilled its part of the OPEC + deal and is going to increase oil production, said President Andres Manuel Lopez Obrador.

“We have fulfilled our obligations to reduce production by 100,000 barrels per day. This stage is completed, we will increase production,” the President said during a morning press conference.

The new OPEC + agreements started in May with a reduction in oil production by 9.7 million barrels per day for two months, and in June, this condition was extended to July. Further, the volume of cuts will decrease to 7.7 million barrels per day for the period until the end of the year and 5.8 million – until the end of April 2022. The base of reference is taken in October 2018, but for Russia and Saudi Arabia – an indicator of 11 million barrels per day, from which, by analogy, there is a decrease of 23%, 18%, and 14%, respectively.

In the OPEC+ agreement, 23 countries participate, including Mexico. However, it initially insisted on separate commitments for itself, agreeing to reduce production only in May-June by 100 thousand barrels per day instead of the 400 thousand offered to it.

At the same time, after the June meeting of OPEC+, at which the condition for reducing oil production by 9.7 million barrels per day (including Mexico) was extended to July, official statements of the Alliance on the termination of the obligations of the Mexican side were not made. But Mexico itself, represented by energy Minister Rocio Nahle, almost immediately announced that it confirms the OPEC+ agreement signed in April when it insisted on reducing production only in May-June.

It is noteworthy that in May, Mexico, apparently, even exceeded its obligations to the Alliance. According to data from the Mexican oil and gas Corporation Pemex, the commitment to the deal was 120%. And according to the International Energy Agency (IEA), the country exceeded its obligations even by 65% in May. In June, according to the IEA, Mexico fulfilled the OPEC + deal by 100%.