Insight
OPEC+ and Mexico: Supply cut or refining goals?
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
Mexico convinced the OPEC+ group to lower their total supply reduction target from 10 to 9.7 million b/d. Mexico refused to accept a higher cut, arguing that it was impossible for the country to comply with other government targets if they did. A new clue has emerged to explain Mexico's resistance. A week following the OPEC+ meeting, the Mexican President announced an increase in domestic refining -- long-planned, but only achievable in the midst of widespread cuts in global refinery utilization. This report explores the role of four elements that help explain Mexico's position during the OPEC+ negotiations: • The president's approach towards OPEC • Production goals for 2020 • Mexican government and Pemex hedging programs for 2020 • The push to increase domestic refinery utilization
Table of contents
- Keep OPEC+ relationship but do better
- The production struggle or playing the numbers
- Mexico’s hedging program: covered but not shielded
- Another doubling down: run refinery run
Tables and charts
This report includes the following images and tables:
- Mexican oil production forecast
- Mexico's hedging volume and cost
- Mexican crude exports forecast
What's included
This report contains:
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