Mexico City, April 11 (IANS) Mexican President Andres Manuel Lopez Obrador announced that the US has agreed to help his country comply with cuts to oil production required by the Organization of Petroleum Exporting Countries (OPEC).
Mexico has promised a reduction of 100,000 barrels of crude oil per day in the OPEC negotiations, and the US has dedicated itself to reducing its own production by another 250,000 barrels which had been initially required from the Latin American country, reports xinhua news agency.
Mexico’s contribution represents a 5.5 per cent reduction in its oil production, less than the 23 per cent that had been requested by OPEC.
“It is expected that this will increase the price of crude oil and that this will compensate, but above all it helps to stabilize the economy, the markets, and we consider it to be very useful,” Lopez Obrador said on Friday.
The OPEC and some other major oil producing countries on Thursday reached a tentative agreement to cut production to stop a market free-fall amid the coronavirus pandemic, pending the consent of Mexico.
They plan to cut their overall production by 10 million barrels per day for two months starting from May 1.