The president of mexico, Andres Manuel Lopez says its country has put an end to the standoff with OPEC.
He said this on Friday, that, his country will cut its crude oil output by 100,000 barrels per day, joining OPEC and other producers in a swift efforts to stabilize the market.
However, OPEC was hoping Mexico would cut its output by 400,000 barrels per day,that aside, the country’s initial delay in joining the line had jeopardized the arrangement.
Obrador, speaking at his daily press briefing, said President Trump “generously” offered for the U.S. to reduce output by an additional 250,000 barrels a day, according to The Wall Street Journal.
However, OPEC was hoping Mexico would cut its output by 400,000 barrels per day, and the country’s initial delay in joining the line had jeopardized the arrangement.
Donal trump said at a conference on friday that, While this is happening, The United States will help Mexico along and they’ll reimburse us some time at a later date when they’re pepared to do so.
On the hand, U.S. producers cannot coordinate to lower output because doing so would give a reason to lack of trust. Governments on the state or federal level would have to “mandate a production cut,” allowing the market to “answer this from a U.S. perspective,” Stephen Shorck, founder and editor of The Shorck Report, told FOX Business.
Meanwhile ahead of Thursday’s meeting, the U.S. producers, including Continental Resources, had already reduced their daily output by a combined 600,000 barrels per day, Shorck said. Still, there has not been an order from the Trump administration to lower its cost.
Image: Andres Manuel Lopez