MEXICO CITY: Mexico's finance ministry said on Monday that it expected a lower oil price for Mexican crude next year than it projected in its 2015 budget proposal, which was submitted before the recent drop in global crude prices.
The finance ministry said in a statement that its formula now projected an average price of $79 per barrel next year, below its proposal of $82 made in September and an $81 price approved by lower house lawmakers this month.
Finance officials provided the new estimate to a meeting of lawmakers, including senators who are currently debating the 2015 budget bill, the ministry said.
International oil prices have slumped because of a production glut and concerns about slowing global growth. Heavy Mexican crude is cheaper than global benchmarks and its price hit a four-year low this month.
Latin America's No. 2 economy is a top crude exporter to the United States and Mexico's government relies on oil sales from state-run Pemex to fund about one-third of its budget.
Earlier this month Mexican lower house lawmakers approved budget legislation for 2015 that lowered the estimated oil price while factoring in a weaker exchange rate for the peso. A weaker exchange rate means the government can count on more pesos per dollar of crude exports.
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