Daily Management Review

Mexican oil falls to $10 per barrel


Price of Mexican oil exports fell by another 20% on the first day after the weekend, stopping at $ 10.37 by the end of the day, Pemex Oil Corporation said.

Matthew Rutledge
Matthew Rutledge
The fall in oil prices to the level of the late 1990s, when the price confrontation between Saudi Arabia and Venezuela was superimposed on a drop in demand due to the Asian financial crisis, continues against the backdrop of Riyadh's aggressive price policy in the fight for market share and news from Norway, launching on full capacity Johan Sverdrup field in the North Sea.

According to analysts, the coronavirus pandemic will result in a fall in global oil demand of 15–20 million barrels per day, which will require significant production cuts from all exporting countries.

Earlier in March, Pemex CEO Octavio Romero Oropeza said that by the end of 2019, the average cost of oil production in the company rose to $ 14.2 per barrel, although it was $4.8 at some fields.

After the onset of the oil crisis, Pemex, the Mexican oil corporation, announced that it had the resources to ensure liquidity of all operations and debt servicing through revolving credit lines and, in addition, received insurance payments from the pool of insurers envisaged when the oil price fell below $ 49 per barrel. 

source: reuters.com