OPEC+ to continue negotiations for reaching consensus with Mexico

Mexico ready to cut oil production by 100,000 barrels for next two months — minister

The OPEC+ agreement to reduce oil production by 10 million barrels per day will be preserved despite Mexico’s withdrawal from the deal, sources told TASS on Friday.

"The deal is preserved, but the agreement is now conditional. I think we will try to win Mexico’s consent during the G20 talks on Friday," one of the sources said.

Another source confirmed this information, adding that the OPEC+ talks still continue.

A source taking part in the ongoing negotiations told reporters earlier on Friday that Mexican Energy Minister Rocio Nahle disagreed to the proposed OPEC+ oil cuts and left the video conversation, "enraged."

TASS sources also said the negotiations continued even after the Nahle withdrew from the conversation.

The OPEC+ talks in the format of a video conference began at 17:00 Moscow time on April 9 and continued overnight. TASS sources said that the participants agreed to cut their combined oil production by 10 barrels per day in May-June. However, during the discussion on each country’s quotas, Mexico rejected the proposed reduction of 400,000 barrels per day from the figures of October 2018.

One of the sources said Mexico disagreed with the basic level for the reduction. During the talks, Nahle argued that her country’s oil output was higher recently, and, therefore, the country should reduce less.

In line with the OPEC+ plan, Mexico was supposed to reduce its oil production from the basic figure of 1.75 million barrels per day. However, according to the International Energy Agency, the country produced 1.95 million barrels per day in the fourth quarter of 2019.

According to a statement issued after the talks, OPEC+ ministers expect to reach consensus with Mexico, which disagreed with proposed oil production cuts.

"The above agreement is conditional on the consent of Mexico, including volunteered adjustment in the attached tables," the statement says.

The secretariat also calls upon other oil producing nations to make their contribution into stabilizing the oil market.

"Participating Countries will meet on 10 June 2020 via webinar, to determine further actions, as needed to balance the market," the document says.

A discussion about terms proposed by Mexico is scheduled to take place within the framework of G20 talks, scheduled for 15:00 Moscow time on Friday, April 10.

After leaving the talks on Friday, Energy Minister Rocio Nahle said in a Twitter post that Mexico had offered reduce its oil production by 100,000 barrels per day for the next two months as part of the OPEC+ deal.

According to TASS sources, during Thursday’s talks OPEC+ nations suggested that Mexico reduce its oil production by 400,000 barrels per day.

Early on Friday, during the web conference of OPEC+ ministers, Nahle disagreed with the proposed cuts and

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