Mexico Will Follow OPEC's Lead

Mexico said it would probably follow OPEC's lead if the cartel decided to increase oil production. "Mexico's government reiterates its compromise to contribute to the stability of the international oil market," the nation's energy ministry said in a statement, noting its concern about recent oil price volatility. Leading OPEC member Saudi Arabia wants to raise crude oil supplies by between 1.5-2.0 million barrels per day (bpd) to fill a gap left by a crippling five-week old strike in Venezuela, the world's fifth biggest exporter.

Mexico's energy ministry said it would await the outcome of the meeting to decide the nation's position on raising exports. Mexico, the eighth largest oil producer in the world, has stayed in line with OPEC policies on oil production since 1998. In December Mexico said that as of this month it would increase its formal export platform by 100,000 bpd to 1.76 million bpd after OPEC agreed to raise its output ceiling. In November Mexico exported an average of 1.691 million bpd on average production of 3.080 million bpd.