Mexico Confirms Cuts
Mexico has confirmed it is cutting crude exports by 100,000 b/d from a base of 1.66 million b/d for six-month period beginning January 1. This decision follows OPECs announcement of a 1.5 million b/d cut and pledges by independent producers to lower output by 462,500 b/d. Mexico had warned that it would only cut its exports if other producers agreed to do the same and they also warned that they would be looking for other producers to comply strictly with the new accords.
In reaching accords with other countries, Mexico always applies restrictions to exports rather than total production, arguing that it has the largest domestic market of any major producer and has a corresponding duty to maintain supplies to national consumers.