Oil Price Uncertainty Prevails

Uncertainty prevailed in the industry this week as OPEC production cuts divided opinions regarding the future of oil prices. Moreover, while Mexico’s energy policy has received criticism for over-relying on fossil fuels, the country was among the major contributors to the decrease of global flaring.

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OPEC Production Cut Presents a Complex Scenario for Latin America

After OPEC unexpectedly announced a 500Mb/d cut in oil production for the rest of 2023, many banks raised their forecasts for oil prices. However, many operators believe that other economic factors will prevent prices from rising, as demand indicators remain concerning.

Price of Oil Rises Due to Exchange Rates

The WTI price rose above US$80/b this week. The dollar weakened after US inflation showed signs of moderation in March. According to tanker tracking data, Russian shipments fell below 3MMb/d for the first time in eight weeks after Moscow pledged to reduce production in retaliation to international sanctions.

Global Flaring Decreases, Mexico Among the Major Contributors

Global flaring reached 139m3 in 2022, its lowest level since 2010. The decrease was attributed to three countries: Nigeria, the US and Mexico. 

Oil Income Falls

Mexican revenues from E&P activities in December 2022 amounted to US$2.065 billion. Revenues from the Mexican Oil Fund (FMP) reached US$176.952 billion. During the last month of last year, this amount decreased due to the fees for exploration and production activities carried out in the country.

SENER Reports on Dos Bocas Advances

Rocio Nahle announced that operations at the Dos Bocas Refinery are in the testing and startup phase of the medium steam line, a 4km line that generates steam and electricity. Nahle highlighted that this segment is important for generating electricity and carrying out activities within refineries.