• 4 minutes Is The Three Gorges Dam on the Brink of Collapse?
  • 8 minutes The Coal Industry May Never Recover From The Pandemic
  • 11 minutes China Raids Bank and Investor Accounts
  • 4 hours Why Wind is pitiful for most regions on earth
  • 3 hours Is OilPrice a cover for Green Propganda
  • 32 mins During March, April, May the states with the highest infections/deaths were NY, NJ, Ma. . . . . Today (June) the three have the best numbers. How ? Herd immunity ?
  • 44 mins Sources confirm Trump to sign two new Executive orders.
  • 13 hours In a Nutshell...
  • 1 day Joe Biden to black radio host, " If you don't vote for me you ain't black". That's our Democratic Party nominee ?
  • 2 days Happy 4th of July!
  • 2 days Putin Paid Militants to Kill US Troops
  • 2 days Putin Forever: Russians Given Money As Vote That Could Extend Putin's Rule Draws To A Close
  • 3 days Tesla Model 3 police cars pay for themselves faster than expected, says police chief
  • 3 days Victor Davis Hansen on Biden's mental acuity " . . unfit to serve". With 1 out of 5 Democrats admitting it. How many Dem's believe it but will not admit it?
  • 5 hours Coronavirus hype biggest political hoax in history
  • 2 days Apology Accepted!
Why Power Companies Can’t Ditch Coal Just Yet

Why Power Companies Can’t Ditch Coal Just Yet

The electric industry’s decarbonization program…

Is The UK Doing Enough To Stimulate EV Sales?

Is The UK Doing Enough To Stimulate EV Sales?

Electric vehicle sales in the…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Mexico Set To Tap $6.3B From Oil Fund To Plug Budget Shortfall

Mexico may use up nearly half of the money in its rainy-day oil fund to plug a shortfall in budget revenues, after that fund declined in the first half of 2019 on the back of disappointing revenues from oil.

Mexico could use as much as US$6.3 billion (121 billion Mexican peso) out of the oil fund’s US$15 billion (296 billion peso) reserves to plug the gap in its budget revenues, Bloomberg quoted Alejandro Gaytan, chief economist at the Mexican Finance Ministry, as saying this week.

The government continues to target meeting its goal of posting a primary budget surplus of 1 percent of its gross domestic product (GDP), Gaytan told reporters, as carried by Bloomberg.

However, oil revenues in Mexico have been lower this year and contributed to the deficit in the budget revenues in the first half of 2019. According to Bloomberg, Mexico’s oil revenues were US$5.6 billion (108 billion peso) short of the estimated oil income for H1 2019.

Mexico’s slowing economy has just escaped a recession by a hair’s breadth after growing by 0.1 percent in the second quarter, following a 0.2-percent contraction in the first quarter. Technically, recession in an economy occurs when a country has two consecutive quarters of contracting economy.  

Mexico’s slowing economic growth and falling oil revenues come six months after populist left-wing President Andrés Manuel López Obrador took office and started to halt many of the provisions in the energy reform of his predecessor Enrique Peña Nieto, who opened in 2013 Mexico’s oil and gas sector to private investment for the first time in seven decades. Related: Oil Trapped In Narrow Price Band

López Obrador has criticized the energy reform, vows not to call new bidding rounds for foreign oil companies for oil exploration and production in Mexico unless those companies show results, and seeks a greater role for indebted state oil firm Pemex in reversing the downward trend in Mexican oil production.

Economic growth in Mexico has weakened due to an under execution of the budget, labor strikes, and fuel shortages, Alejandro Werner, Director of the Western Hemisphere Department of the International Monetary Fund (IMF), said earlier this week in an updated outlook for Latin America and the Caribbean.

“In Mexico, uncertainty remains high due to certain policy reversals, notably pertaining to energy and education reforms. There are also continuing concerns about the financial health and prospects of Pemex,” Werner said.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




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