The biggest supply cut ever contemplated by the world's top oil producers is hanging in the balance as a refusal by Mexico's leftist leader to imperil his plans to rebuild state oil company Pemex has angered the Saudi prince who helped craft the deal.
MEXICO CITY/DUBAI - The biggest supply cut ever contemplated by the world’s top oil producers is hanging in the balance as a refusal by Mexico’s leftist leader to imperil his plans to rebuild state oil company Pemex has angered the Saudi prince who helped craft the deal.
The refusal by President Andres Manuel Lopez Obrador to compromise his plan to revive Pemex by agreeing to steep cuts has shone the global spotlight on Mexico as he prioritizes his domestic agenda over the collective interests of the world’s largest oil producers. Lopez Obrador, a staunch advocate of non-intervention in other countries’ affairs, defended his stance on Friday, harking back to a time Mexico was “strong” and “self-sufficient” in oil.
The source said Nahle, who only last month signed up to smaller planned cuts, was intransigent over the proposed reductions. Delegates tried various ways to get around the issue, but in the end Saudi Arabia “was inflexible,” said one OPEC source. Moscow does not mind how the output cut share would be split between Mexico and the United States, and it considered the deal to be already done, a Russian source said.
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