OPEC+ and Mexico: Supply cut or refining goals?

Get this report


You can pay by card or invoice

Contact us

Submit your details to receive further information about this report.

For details on how your data is used and stored, see our Privacy Notice.

- FAQs about online orders
- Find out more about subscriptions

23 April 2020

OPEC+ and Mexico: Supply cut or refining goals?

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 3 images and tables including:

  • Mexican oil production forecast
  • Mexico's hedging volume and cost
  • Mexican crude exports forecast

What's included

This report contains:

  • Document

    OPEC+ and Mexico: Supply cut or refining goals?

    PDF 848.19 KB