Mexico rules out crude production cut in concert with OPEC: source

Vienna (Platts)--3 Dec 2015 418 pm EST/2118 GMT

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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