More Top Picks Best Foldable Weight Benches For Small Spaces
player ready...Mexico has lowered the price of its light crude oil by $1.25 a barrel, to $27.75, but said its export level will remain unchanged at 1.5 million barrels a day.
The Secretariat of Energy, Mines and State Industry, announced the cut in the price of the light Isthmus variety, but said the country`s heavier Maya variety would remain unchanged at $25.50 a barrel.
Light crude makes up 45 percent of Mexico`s petroleum exports. The country produces about 3 million barrels of oil a day.
The secretariat said the decision to hold export levels where they were was in line with recent decisions by the Organization of Petroleum Exporting Countries. Although Mexico isn`t a member of OPEC, it has agreed to go along with decisions taken by the organization.
The price of Mexico`s Isthmus crude had been the same as Saudi Arabian light, which last week was cut by $1, to $28 a barrel. Some other OPEC light oils were cut by as much as $1.41 a barrel.
The announcement noted that the world market had reacted favorably since OPEC`s decision to adjust prices in order to reduce the differential between light and heavier crudes.
About 50 percent of Mexico`s crude is exported to the United States. The country`s other main customers are Europe, Japan, Israel, South Korea and Latin American nations.
The new prices will remain in effect through February, the secretariat said. It said the Mexican Petroleum Export Committee will meet at the end of the month to review the market conditions and determine if further price adjustments are necessary.
The reduced price and static production levels will mean an annual loss of revenues for Mexico of about $300 million and a 1.9 percent decrease in dollar earnings for the state oil company Petroleos Mexicanos (Pemex), the announcement said.
Oil exports make up 75 percent of Mexico`s foreign income and taxes on Pemex provide the government with 50 percent of its revenues.
Mexican financial observers have said the country is in a position to withstand a drop of as much as $4 a barrel in the price of its oil without serious ramifications for the economy.