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Mexican president calls on Russia, Saudi Arabia to end oil price war

Published 04/04/2020, 11:46 AM
Updated 04/04/2020, 11:50 AM
© Reuters. Mexico's President Andres Manuel Lopez Obrador speaks during a news conference at National Palace in Mexico City

MEXICO CITY (Reuters) - Mexican President Andres Manuel Lopez Obrador on Saturday called on Russia and Saudi Arabia to reach a deal soon and end their oil price war to avoid deepening the oil price crisis.

Mexico and others have seen the prices for their crude exports battered in recent weeks after the fallout from the new coronavirus eroded demand and major oil producers could not agree on how to respond.

"How can Russia and Saudi Arabia not come to an agreement in order to stop oil price declines that are further deepening the crisis?" Lopez Obrador asked. "Where is the responsibility toward humanity? Where is the universal brotherhood? Where are the so-called heads of state?"

Mexican Energy Minister Rocio Nahle had told Reuters on Friday that oil prices would not stay this low, and that the oil price crash did not merit a change in strategy.

© Reuters. Mexico's President Andres Manuel Lopez Obrador speaks during a news conference at National Palace in Mexico City

Even so, Mexican national oil company Petroleos Mexicanos, or Pemex [PEMX.UL], slid deeper into "junk" territory after Fitch Ratings cut the rating of its bonds by another notch to BB with a negative outlook.

Latest comments

Trump also can't do anything… how dare you?
It's time to put china back behind the iron curtain. Bring companies back to this continent. Build out Mexico and South America.
Well, they can do that, provided ppl in these countries take similar, or rather lower wages. Cuz Shifting operations isn't cheap.
Also, they have a bigger consumer base too.
I feel a bunch of kids and penny flipers are posting to this message board. OIL prices are extremely low and are not sustainable. No one is manipulating the price. By Friday, the price willhit $40
My call options sure hope so. This oil market is *****and this 1000 point increase is comlety unreaslitic says my puts
Oil storage capacity has exhausted, and this will also cause prices to spike, once they won't pump it let remaining only the loaded tanks that'd supply normalized demand for only a few days!
Hey I'm not complaining. I'm having fun filling up my gas tank with extra change in my pocket. Keep up the price war Putin and MBS!
Agree - i like cheap gas
I don't see any offer by Mexico to cut production - nor by the USA - I do not see a deal being reached soon on this..........
At this price, mexico hurts. Oil companies go out of business. Poeple lose jobs.
Oil prices must and will rise either way or another whereas mostly producers might stop pumping it if no profitable.
No, it's not. Because if someone dump production, their rival will get the whole profit. And that's not how the world works
They can tariff and add some cash to treasuries while protecting their industry, In this case WTI oil would rise over Brent oil.
I think they want to wage a price war bankrupt the little guys and buy their resources in bankruptcy. This is why the saidis and the russians are so rich. They use their money to make more of it. They lose short term but win long term. Everyone else loses both short and long term.
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