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Read today on Bloomberg that Mexico walked away from the talks yesterday because they were unhappy with a cut of 400kbpd.. Their minister said 100k is max and walked away from the talks, so the Saudis are now saying that without them the deal might be off all together.. there is however hope that today US and Canada, who are capable of up to 5mbpd cuts, will be able to contribute to the deal and persuade Mexico to be a team player... by the looks of it today will be a very important day for us, if things go sour, forget about the 22p I was saying yesterday, we will be bk to 12p...
I think Mexico will to whatever US tell them to do otherwise US bleed them dry. That would be rather unfortunate for them but we never know.
That's an 18 hour old article written before the meeting closed..
Mexico agreed to the cuts and contributed when I went to sleep last night. :)
Pump, that article came out 3hrs ago.. it’s the latest development from the talks.. Russian news, Vesti.ru also reported that couple of hrs ago
If you go back to sleep maybe the US will agree to some more.
They agreed to 100kbd and the OOEC wanted them to have 400kbd. If the rest of the group can still agree and G20 work out a deal it won’t be a massive disaster
Mexico produce 2.5mb a day, they were being asked to cut 20%. With everyone else taking 10% I am not surprised they felt hard done buy.
They must have also seen a huge downturn in demand for there other biggest export.. powder.... chilli powder that is. :)
Mexico could be playing a risky game and could end up like Venezuela.
They are nicely hedged but don’t think they’re aware of the word consequences.... yet, trump will give them a spanking
PnT,
Need to get your facts right ...... all, that is ALL OPEC+ are going to cut 22% each and everyone !!! only Mexico want to cut their by <10% ....
Not likely, they dont have enough reserves for uncle Sam to plunder, and too many Mexicans infiltrated into us political system. Not to mention they number in 50million direct and indirect decendents.
Spot on, Mexico is bargaining for something. They are playing their hedge card and rightly so
Correction 23%
And Mexico are only be asked to do the 23% cut for 2 months ffs ..... overall works out at average of 12% cut over 12 months on a sliding scale.
"And Mexico are only be asked to do the 23% cut for 2 months ffs ..... overall works out at average of 12% cut over 12 months on a sliding scale..."
And they could probably achieve that 23% by doing a shutdown for annual maintenance. !!
If they announced 25mbpd there would still be posters on here saying it was a bad result......................
I don't know why folk are saying SP will fall so much on Tuesday. Held well Friday close, the market knows any amount of a cut is not going to sort the fact oil is not being used at any price. Granted, the oil price may steady. The facts are Tullow is safe for medium term and just following thus very volatile market. Ups and downs normal in these times and major jumps will happen with news
and people are expecting the price to ‘collapse’
wanting it to collapse would be a better phrase
Mexico has hedged or forward sold 80% of its production ..it does t have 400k bopd available to cut .. it has offered 100k.
So OPEC are asking Mexico to cut by 23% for just 2 months from May 1st, and POO is expected to bounce 50% if Mexico say YES.
errrr .... Is it just me, or does not cutting make no financial sense at all ?
they are hedged, why would they bend over, the market needs to bend to them.
It has not disclosed how many barrels the hedge covers, but said it had secured the price of $49 a barrel set in the 2020 budget.
Mexico produces some 1.7 million barrels of crude per day.
They hedge a lot, I remember 40% being we quoted. Considering January and most of February were above 50 not sure how much is used
yeah they said 2020 budget, but since fuel use is down at least 20% but probs 35% right now, lets assume they are hedged till march-april 2021. Happy days for them, they must want the US to burn. How the shoe on the other foot for once etc...