Mexico Puts Global Oil Deal At Risk – OPEC
The Organisation of Petroleum Exporting Countries (OPEC) has said that the multilateral deal to lower global oil production by 10 million barrels daily production to stabilize prices was threatened after Mexico walked out of the meeting without consenting to the deal.
OPEC disclosed this in a statement on Friday, saying that the action would make the move to rally oil prices uncertain.
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Trump had intervened last week to settle the feud between Russia and Saudi Arabia which had led to increase in the volatility of the global oil market and consequently dipped oil prices.
The statement further disclosed that the deal was conditional on the consent of Mexico, the only nation not to agree to the cut.
Mexico’s Energy Secretary, Rocio Nahle Garcia, said the decision not to agree on the proposed cut reflects the nation’s plans to sustain its production and budget spending despite the global price crash, the statement added.
Garcia said in a tweet after leaving the meeting that her country would only reduce output by 100,000 barrels a day, 300000 barrels less than the 400,000 barrels a day proposed by OPEC and OPEC plus.
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The G-20 energy ministers’ meeting on Friday, criticised Mexico’s decision, as non OPEC and OPEC plus members like the United States and Canada, were both ready to cut production by 5 million barrels a day.
