Following OPEC's Lead, Mexico Ready to Cut Oil Production

Via NY Transfer News * All the News That Doesn't Fit

[the represents a victory for Venezuela's President Chavez,
who proposed the production cut, and who was initially turned
down by Mexico's President Fox.--NY Transfer]

http://ap.tbo.com/ap/breaking/MGAU7CHZ1UC.html


Nov 14, 2001

Following OPEC's Lead, Mexico Says Its Ready to Cut Its Oil Production

The Associated Press

MEXICO CITY (AP) - Mexico will cut oil exports up to 100,000 barrels
per day in 2002 as part of OPEC's efforts to reduce oversupply in the
world market, the Energy Ministry said Wednesday night.

The decision comes after the Organization of Petroleum Exporting
Countries agreed in Vienna on Wednesday to cut its quotas by 1.5
million barrels a day beginning Jan. 1, a move the group says is
dependent on Mexico and other non-OPEC producers following its lead.

OPEC officials said they wanted 500,000 barrels per day in non-OPEC
cuts to avoid their members losing market share by bearing the full
weight of the reductions.

Energy Ministry officials said Mexico's decision to cut exports is
also dependent on other non-OPEC producers joining the effort.

Mexico's state oil monopoly Petroleos Mexicanos, or Pemex, exports
1.65 million barrels per day, out of its total production of 3.1
million barrels daily.

"Mexico considers that there has been an important imbalance in
supply and demand in the world oil market in recent weeks," the
ministry said in a statement.

The global economic slowdown has also affected demand for crude oil,
"and therefore the outlook for the market in the short term is not
favorable," the statement said.

Mexico is the third leading exporter of oil to the United States
behind Saudi Arabia and Venezuela.

AP-ES-11-14-01 2203EST

This story can be found at :
http://ap.tbo.com/ap/breaking/MGAU7CHZ1UC.html

 
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