Mexico To Stick To April OPEC+ Deal, Setting Production Cuts Until June - Energy Secretary

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

BUENOS AIRES (UrduPoint News / Sputnik - 07th June, 2020) 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.

The 23-nation alliance of oil producers agreed on Saturday to extend the 9.7 million-barrel daily cut for another month until July. The OPEC+ energy ministers also agreed to hold output cut monitoring meetings every month for the rest of the year, with the next meeting scheduled for June 18.

OPEC+ oil producers reached an agreement on April 12 to collectively reduce oil production by 9.

7 million barrels per day (bpd) for two months, starting from May 1. The deal stipulated that production would be cut by 7.7 million bpd for 6 months after that, until December 31. 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.