Mexico Says Reached Deal With Trump to Cut Crude Output
The president of Mexico -- the lone holdout in an OPEC deal to cut crude production and shore up prices -- said Friday that he has reached a deal with the US president to reduce oil output.
Mexico will cut production by 100,000 barrels per day, President Andres Manuel Lopez Obrador said, adding that it was Donald Trump who reached out to him, France 24 reported.
"Trump communicated with us," he told a news conference.
The announcement came hours after OPEC revealed that major oil producers around the world -- except Mexico -- had agreed to cut output by 10%.
Oil prices have been wallowing near two-decade lows due to the coronavirus pandemic and a price war between key players Saudi Arabia and Russia.
The agreement would see output between May and June cut by 10 million bpd and another eight million from July to December, but it depends on Mexico's consent to take effect.
Under the Organization of the Petroleum Exporting Countries deal, Mexico would have had to cut its output by 400,000 bpd.
But Mexico resisted, and wanted the reduction limited to 100,000. Lopez Obrador said on Friday that Trump agreed to cut US production by an extra 250,000 bpd "as compensation" for Mexico.
"They asked us for a reduction like that of Saudi Arabia, like that of Russia, of around 23% of production," said Lopez Obrador. "We resisted to the end because it cost us a lot of effort to raise production."
Under a war-time emergency law, Trump could in fact order US oil companies to modify production levels but normally this would be for them to churn out more crude, not less.
source: Financial Tribune
Top News
Five last month
Two last year
US Energy Dept finalizes $2.26bn loan for Lithium Americas’ Nevada mine
Abandoned copper mines embraced as fast track to boost output
Glencore posts lower metals output for first nine months, reiterates outlook
Mercuria eyes equity in African assets, new metals boss says
Solidcore to buy 55% stake in Kazakhstan’s Syrymbet tin deposit for $82.5m
Traders see gold as a surefire bet as coin-toss election looms
Gold price surge adds glitter to tarnished miners
Gold price shows little reaction to jobs data
Environmentalists sue over US approval of ioneer’s Nevada lithium mine
St Barbara raises $73m to fast-track Simberi sulphide production
Copper price sees biggest drop since May as Trump’s win boosts dollar
Sibanye agrees wage deal for its gold operations, union says
China’s industry ministry plans to step up lithium, cobalt, nickel exploration
Liberty Gold advances Black Pine project permitting
China zinc smelter group sets processing fees for Q1 2025
Brazil prepares to remove illegal Amazon gold miners from Munduruku land
Anglo American sells Australian coal JV stake for $1.1 billion
Solidcore to buy 55% stake in Kazakhstan’s Syrymbet tin deposit for $82.5m
Ecuador to reopen mining register for first time in over six years
St Barbara raises $73m to fast-track Simberi sulphide production
Copper price sees biggest drop since May as Trump’s win boosts dollar
Sibanye agrees wage deal for its gold operations, union says
China’s industry ministry plans to step up lithium, cobalt, nickel exploration
China zinc smelter group sets processing fees for Q1 2025
Brazil prepares to remove illegal Amazon gold miners from Munduruku land
Anglo American sells Australian coal JV stake for $1.1 billion
Solidcore to buy 55% stake in Kazakhstan’s Syrymbet tin deposit for $82.5m
Ecuador to reopen mining register for first time in over six years