The United States is ready to help Mexico reach its production cut quota which is part of a historic production cut deal agreed by major crude producers that would slash production and help stabilize a market that’s been rocked by the Coronavirus pandemic, Reuters reported Friday.
Mexico’s President Andres Manuel Lopez Obrador said he spoke with President Donald Trump on Friday and the United States agreed to cut 250,000 bpd for Mexico to help it reach the 400,000-bpd cut that OPEC+ is asking of it.
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Even if the U.S. would really help Mexico reach the 400, 000 bpd cut, it’s not clear yet how OPEC+ would see the total U.S. contribution to the deal during the G20 energy ministers’ meeting, ongoing at the time of this writing.
A marathon video conference between OPEC members and other major energy powers on Thursday ended with a tentative deal to reduce production by 10 million barrels per day in May and June, the deepest cut ever agreed by the world’s oil producers.
But there was a major snag: Mexico declined to support the agreement, and meeting participants said a final agreement is conditional on the country’s consent. Another round of talks between the Group of 20 is scheduled for Friday.
