This provides a bit more background to the surge in production that never happened.
The headline is focused on Mexico but the article talks about the deal that was apparently agreed to with or without Mexico and in the end, Mexico agreed to a 100,000-bbl/month cut in production vs the 400,000 bbls that Saudi Arabia was "demanding."
It was a sideshow.
Mexico: whether it cut 100,000 bbls or 400,000 per month was trivial to global supply.
But it was a huge story for Mexico.
Mexico is currently producing less than 2 million bopd, let's say 1.8 million bopd.
- 100,000-bbl cut = a 5.5% cut
- 400,000-bbl cut = a 22% cut
By the way, Mexico is not a formal member of OPEC+. Mexico has been invited and regularly attends OPEC+ meetings as an "observer."
Ten-year history, Mexican oil production, link here:
US oil imports from Mexico, link here:
- about 20 million bbls/month = 700,000 bbls/day
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