Upcoming Meetings Drive Positive Oil ExpectationsBy Peter Appleby | Wed, 04/08/2020 - 19:29
Though prices remain low, there has been some growth this week and, with some good news from Thursday’s OPEC+ meeting, the industry could keep its positive streak. PEMEX has received help to combat the downturn, while retailers are suffering. All this and more in this week’s oil and gas news.
PEMEX Receives Tax Cut
President López Obrador moved to support PEMEX with a tax burden reduction that will deliver MX$65 billion (US$2.7 billion) in extra funding to the NOC. The decision was already planned but was brought forward due to the seriousness of the oil price collapse that the NOC is facing.
Hopes Around OPEC+ Meeting Push Prices Up
On Tuesday morning, oil prices continued to rise from last week ahead of the OPEC+ meeting in which it is hoped oil producing nations, including Russia and Saudi Arabia, will make an agreement on curtailing production. With prices dropping off midweek, the industry is crossing its fingers ahead of the OPEC+ meeting.
Phase 2 Causes Retail Losses
Reduced movement of people has led to a drop in gasoline sales across Mexico. With Mexico expected to head into Phase 3 in around two weeks, retailers are bracing for the worst.