Mexico will cut oil production by 100,000 bpd, with the production cut coordinated with the US, which has pledged an additional 250,000 bpd cut in output, President Andres Manuel Lopez Obrador has said, APA reports citing Sputnik.
The move comes hours after Mexico became the sole country that refused to join cuts agreed upon by OPEC+, and indicated that it would be prepared to reduce output only by 100,000 barrels, rather than the phased 400,000, 320,000 and 240,000 bpd output limits proposed by OPEC+. Mexico City's position prompted Kuwait's oil ministry to accuse the country of "obstructing" the global agreement on oil cuts. On Thursday, a source in one of the delegations present at the OPEC+ talks warned that Saudi Arabia had insisted that there "would be no deal" without Mexican involvement.
President Obrador has remained hesitant to make cuts to output, since he made increasing national oil company Pemex's output a key component of his economic programme.