• 4 minutes Nord Stream 2 Halt Possible Over Navalny Poisoning
  • 8 minutes America Could Go Fully Electric Right Now
  • 11 minutes JP Morgan says investors should prepare for rising odds of Trump win
  • 47 mins US after 4 more years of Trump?
  • 2 days Daniel Yergin Book is a Reality Check on Energy
  • 2 hours Something wicked this way comes
  • 3 days Permian in for Prosperous and Bright Future
  • 30 mins Why NG falling n crude up?
  • 32 mins Oil giants partner with environmental group to track Permian Basin's methane emissions
  • 2 days Famine, Economic Collapse of China on the Horizon?
  • 3 days Gepthermal fracking: how to confuse a greenie
  • 3 days YPF to redeploy rigs in Vaca Muerta on export potential
  • 3 days Top HHS official takes leave of absence after Facebook rant about CDC conspiracies
  • 18 hours The Perfect Solution To Remove Conflict Problems In The South China East Asia Sea
  • 2 days Open letter from Politico about US-russian relations
  • 4 days Surviving without coal is a challenge!!
Oversupply Adds To Grim Oil Demand Outlook

Oversupply Adds To Grim Oil Demand Outlook

The oil demand recovery is…

China’s Crude Oil Imports Are Slowing Down

China’s Crude Oil Imports Are Slowing Down

China’s imports of crude oil…

Second Wave Of COVID Could Crush Road Fuel Recovery

Second Wave Of COVID Could Crush Road Fuel Recovery

A resurgence of coronavirus cases…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Mexico To Make Or Break OPEC+ Deal

In a twist fit for a blockbuster movie, Mexico has emerged as the decisive player for the OPEC+ production cut deal, according to OPEC.

"The above was agreed by all the OPEC and non-OPEC oil producing countries participating in the Declaration of Cooperation, with the exception of Mexico, and as a result, the agreement is conditional on the consent of Mexico," OPEC said in a press release.

Speaking to Reuters earlier today, Prince Abdulaziz said, "I hope (Mexico) comes to see the benefit of this agreement not only for Mexico but for the whole world. This whole agreement is hinging on Mexico agreeing to it."

The surprising focus on Mexico is a result of the country walking out of the OPEC+ meeting yesterday without agreeing to the production cuts. Another report, however, said Mexico had offered to reduce its crude oil production by 100,000 bpd during the talks, to 1.68 million bpd.

Yesterday, the oil producers' cartel agreed on a 10-million bpd production cut, noting that its members hoped other producers will join in, too, cutting another 5 million bpd in an attempt to rebalance the oil market. Canada and Norway are among the countries that have suggested they would cut while the U.S. has stood firm in its unwillingness to interfere in the oil industry.

Premium: How To Find A “Bargain” In A Distressed Energy Sector

Reuters asked Saudi Arabia's Prince Abdulaziz about that, too.

"They will do it in their own way, using their own approaches, and it is not our job to dictate to others what they could do based on their national circumstances," the energy minister said.

Texas railroad commissioner Ryan Sitton, the man who first floated the idea of a production cut in the oil state, said in a tweet that the world needs to cut at least 20 million bpd in the next couple of months, adding the U.S. could reduce its output by 4 million bpd in that period without having to impose mandatory production caps.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:

Download The Free Oilprice App Today

Back to homepage

Leave a comment
  • Mamdouh Salameh on April 10 2020 said:
    Mexico is hardly an oil exporter. So it is ludicrous that it could make or break the OPEC+ deal. However, the more ridiculous state of affairs is the OPEC+ deal itself.

    How could such a deal succeed in a market sagging under the weight of a glut estimated at 1.8 billion barrels and declining by some accounts at 30 million barrels a day (mbd) with half the population of the world in a lockdown.

    The market has given its initial verdict on the deal by oil prices sliding down immediately after the announcement of the deal agreement. Indeed, we will get the market full verdict in the next 72 hours.

    No matter how big the cuts are, they will hardly have a positive impact on oil prices whilst the coronavirus is still raging. Any cuts are oil down the drain.

    It is far better for countries of the world to implement the strict measures that enabled China to control the outbreak and open the country to business again rather than discussing futile production cuts. This will enable them to shorten the duration of the global lockdown and enable people to resume their normal activities including demand for crude oil.

    Dr Mamdouh G Salameh
    International Oil Economist
    Visiting Professor of Energy Economics at ESCP Europe Business School, London

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News