Mexico Stands By Production Cut Agreement

Mexico's energy ministry said it would continue its 100,000-barrel-per-day crude export cuts until June. Energy Minister Ernesto Martens said after meeting with Russian Energy Minister Igor Yusufov in Moscow that Mexico's policy was unchanged. "Minister Martens reiterated that for Mexico the most appropriate decision at this moment is to maintain the adjustments to the export platform until June 2002, and stressed that our country meets its commitments," the ministry said in a statement. Mexico joined with other leading non-OPEC oil producers to cut a total of nearly 2 million barrels per day (bpd) from January 1, 2002 to prop up weak prices. Oil prices have risen about 30 percent since mid-January.

Russia's government said earlier that it would decide whether to extend its own oil export cuts only after it has met local oil firms. OPEC is trying to persuade Russia to extend the 150,000-barrel-per-day cut it promised in the first three months of 2002 into the second quarter.