Mexico and the United States join the agreement reached yesterday by OPEC, Russia and other independent oil-producing countries to stabilize crude oil prices. In a press conference, Andrés Manuel López Obrador, the President of Mexico, stated that his country will decrease its production in 100,000 barrels a day, and it has advanced that the United States, through its counterpart Donald Trump, has promised to reduce additionally another 250,000 barrels a day.
The decision has already been notified to OPEC and the rest of the independent producer countries. There was a lot of pressure on Mexico, having asked it to reduce its crude production by some 400,000 barrels per day, which would have meant a 23% cut. But, according to López Obrador, this figure was unfeasible, since "it would harm the country."
Yesterday, OPEC, Russia and other producers reached a tentative agreement for a global cut in oil production by 10 million barrels per day for May and June. It is estimated to be the deepest cut ever agreed by the world's oil producers. The decrease in production amounts to only about 10% of the world's normal oil supply
The phased agreement would reduce production by 8 million barrels per day from July to December, followed by a reduction of 6 million barrels per day from January 2021 to April 2022.