Mexican President Andrés Manuel López Obrador announced on Friday, April 10, that U.S. President Donald Trump has agreed to help Mexico comply with cuts to oil production required by the Organization of Petroleum Exporting Countries (OPEC).
Mexico has promised a reduction of 100,000 barrels of crude oil per day in the OPEC negotiations, and the United States has dedicated itself to reducing its own production by another 250,000 barrels, which had been initially required from the Latin American country.
Mexico’s contribution represents a 5.5 percent reduction in its oil production, less than the 23 percent that had been requested by OPEC.
“It is expected that this will increase the price of crude oil and that this will compensate, but above all, it helps to stabilize the economy, the markets, and we consider it to be very useful,” said AMLO in his daily press conference.
The OPEC and some other major oil producing countries reached a tentative agreement on Thursday, April 9, to cut production to stop a market free-fall amid the coronavirus pandemic, pending the consent of Mexico.
OPEC plans to cut its overall production by 10 million barrels per day for two months starting on May 1.