Mexico restates commitment to April accord after OPEC+ talks

MEXICO CITY: Mexico's government on Saturday restated its commitment to an April deal between oil producers in which the country pledged to make only limited reductions to crude output, suggesting it was not going along with plans to extend global cuts.

Comprising OPEC members and allies led by Russia, the group known as OPEC+ agreed in April to cut supply by 9.7 million barrels per day (bpd) in May and June to prop up prices.

Under that deal, Mexico pledged to reduce its crude output by 100,000 bpd in May and June, resisting pressure from other oil producers to make cuts of 400,000 bpd.

The cuts had been due to taper to 7.7 million bpd from July to December, but on Saturday, OPEC+ agreed to extend the production cuts until the end of July.

Mexican President Andres Manuel Lopez Obrador, who has vowed to ramp up the country's crude oil production, said on Friday that Mexico was not in a position to make additional cuts on top of what it had agreed in April.

Writing on Twitter, Energy Minister Rocio Nahle said the OPEC+ talks had concluded well on Saturday.

"The Mexican government remains willing to engage in dialogue and restates its position regarding the agreement signed in April," Nahle said on Twitter.