Saudi energy minister says that OPEC+ output cuts 'hinges on' Mexico joining the pact
Reuters reports, citing Saudi energy minister Prince Abdulaziz
- Hopes Mexico would see the benefit of the OPEC+ agreement
- Expects nations such as US, Brazil, Canada, and others to join OPEC+ effort to stabilise the oil market 'using their own approaches'
The latest twist in the tale was that Mexico grandstanded on output cuts yesterday, leaving the entire agreement in jeopardy ahead of the G20 meeting later today.
As things stand, the overall 10 mil bpd worth of output cuts is said to 'hinge on' Mexico agreeing to chip in as well. The thing is, Mexico has a bit of leverage here as they are already hedged for the year so it isn't so much in their interest to be a part of this.
But I would think that OPEC+ would still go ahead without Mexico anyway, who is trying to just offer up a token gesture in reducing output from a high baseline level.
If anything, the bloc should be cutting production - even if not by the stated 10 mil bpd - by some amount regardless of what other international producers will do. So, let's see what the G20 meeting later has in store for us at around 1200 GMT.