Análisis 03-07-2017

Analysis: Mexico winds up against low oil prices

The nearly $ 60 billion contracts signed in Mexico over two years with foreign and private companies for the next decade are sailing against low oil prices because of the reduced influence of OPEC analysts polled by Sputnik.

"Mexico's energy opening to future investments is moving ahead, despite the uncertainty in the oil market and the depreciation of the price of the barrel in the short and medium term, as a result of the greater imbalance caused by a growing supply of energy" said expert Alexis Juárez Cao.

In December 2016, the Organization of the Petroleum Exporting Countries (OPEC) led by Saudi Arabia, together with large non-cartel producers such as Russia, Mexico, Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Oman and Sudan agreed to cut output by 1.8 million barrels a day.

"The price continued to be depressed downwards, because global demand, affected by lower global growth, causes the market to remain oversaturated" said the author of a doctoral research on Energy Reform in Mexico at the Instituto Tecnológico de Estudios Superiores of Monterrey.

Light reference crude prices failed to hold above $ 50 a barrel, despite the fact that those countries agreed to extend the reduction of their global production to March 2018.