Mexico Could Keep Output Cuts in Place
Mexican Energy Minister Ernesto Martens said on Tuesday that OPEC members and other oil exporting nations were looking at keeping output curbs in place and that current inventory levels are "very healthy".
"What needs to be analyzed are inventories and supply. You'll find that inventories are at a very healthy level," Martens said in a statement. OPEC and other major exporters implemented combined output cuts of 1.5 million barrels per day in January in a bid to prop up world prices. Mexico is not a member of OPEC but has cooperated with the OPEC effort.
OPEC ministers are to review the output cuts in Vienna on June 26 and have indicated they are unlikely to ease the curbs, although Russia said last month it would gradually abandon the deal.
Martens said he expects prices to be stable going forward. "We have to wait for the U.S. economy and the behavior of inventories in the rest of the world. We will see prices more or less stable."