15.07. Mexico announces completion of OPEC+ commitments and increased production

Mexican President Andres Manuel Lopez Obrador said the country has fulfilled its part of the OPEC+ deal and intends to begin to increase oil production. Mexico has already reduced production by 100 thousand barrels per day.

According to the agreement, Mexico reduced production by 9.7 million barrels per day from May to the end of June. In July, the contract was extended until the end of July. Since August, OPEC+ member countries are expected to reduce production by 7.7 million barrels for the period until the end of the year and by 5.8 million by the end of April 2022.

23 countries are involved in the agreement, however, Mexico initially insisted on separate commitments, agreeing to reduce production only in May-June by 100 thousand barrels per day instead of the 400 thousand offered to it.

It should be noted that in May Mexico even exceeded its obligations to the alliance: the commitment to the deal was 120%. And according to the International Energy Agency (IEA), in May the country exceeded its obligations even by 65%. In June, Mexico executed the OPEC+ deal 100%.