Mexico is not willing to cut its crude production as part of any
coordinated action by OPEC and non-OPEC producers, a Mexican energy
ministry source said Thursday.
"The ministry has made clear on several occasions that Mexico cannot
cut back on its production," the source told Platts.
Mexican crude production peaked in 2004 at almost 3.8 million b/d,
and the country is aiming to reverse the decline through ambitious
reforms to its oil sector.
State oil company Pemex said in its most recent report, in early
November, that output was running at less than 2.3 million b/d.
OPEC kingpin Saudi Arabia has ruled out any unilateral crude output
cuts without the participation of non-OPEC producers.
Earlier Thursday, a Saudi source rejected a media report quoting a
senior OPEC delegate saying that the kingdom was preparing a
proposal for an eventual 1 million b/d OPEC cut that would require
the participation of Iran and Iraq and also reciprocal cuts from
non-OPEC producers, such as Russia, Mexico, Oman and Kazakhstan.
Russian energy minister Alexander Novak repeated his insistence that
Russia cannot simply adjust production up or down because of the
geographical conditions that govern much of its output, and said
that in any case an output cut would not be "expedient" for Moscow.
Nor, he said, did he expect any major decision on a coordinated
output cut to result from OPEC's meeting on Friday.
--Ronald Buchanan,
newsdesk@platts.com
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