El Universal (Mexico): Mexican oil reached its highest prices since then, as Russia emerged from the deal with OPEC

Wednesday, may 20, the price of Mexican oil has increased and was the highest since March 6, when Russia broke a deal with the Organization of countries — exporters of oil (OPEC), which ultimately led to the collapse in the oil market.

Wednesday, may 20, Mexican state-owned petroleum company Pemex (Pemex) reported that sells Mexican oil mix at 27.71 USD per barrel. The increase was 4.4% or 1.16 dollar compared with Tuesday, may 19.

The value of the national oil hasn’t reached this level since March 6, when it terminated the agreement on the reduction of oil production between OPEC and Russia, which was concluded three years ago. It happened after Moscow offered to significantly cut production in order to compensate for the low demand caused by the outbreak of coronavirus.

Russia rejected the offer. In response, the oil cartel has lifted restrictions on production, which led to a price war that lasted several weeks.

Oversupply of oil, which was provoked by this conflict, as well as a sharp decline in demand in connection with the crisis caused by the pandemic coronavirus, led to the fact that the tanks have no space left to store the oil. In addition, the collapsed international quotes. 20 April, oil prices for the first time in history fell below zero.

After a month in the oil market there was a feeling of relative calm. This is due to efforts to reduce the supply around the world and possible growth of demand in China, the USA and other countries, which began to resume activities that were suspended due to the crisis in healthcare, caused by a coronavirus pandemic.

Wednesday, may 20, the energy information Administration, the U.S. reported that last week the oil reserves in the country declined by 5 million barrels. Thus, this second consecutive decline for the week.

The price of the Mexican crude oil Pemex 27.71 dollar matches of 4.06 pesos per liter of refined oil given the fact that each barrel contains 159 liters, and in accordance with the exchange rate FIX, defined by the Central Bank of Mexico.

In this regard, since the beginning of the year, the average price of Mexican oil is 31,99 USD. According to the Ministry of Finance on April 1, the price was to be $ 24, and initially in the budget for the year 2020 has meant that the price will be $ 49.

In turn, the price of U.S. WTI, which equals the producers of the Mexican oil mix, made up 33,49 dollar. This is the highest price since March 10. Compared to Tuesday, may 19, it has increased by 3% or the 99 cents.

The report, published on Wednesday, 20 may, markets analyst Oanda (Oanda) Edward Moya (Edward Moya) has warned that crude oil prices will bring big profits until you begin to remove the limitations associated with the increase in cases of infection covid-19.

According to the Agency “Bloomberg”, the price of oil Brent extracted in the North sea, rose by 3.2% or 1.10 dollar and on may 20 reached 35.75 USD.