Adds background on prices.
Mexico will participate in an Opec+ meeting on 9 April, the energy ministry told Argus today.
"As a member of Opec+, Mexico will participate in the next meeting," the ministry said.
Mexico does not yet anticipate any cuts to production as part of a wider agreement, the ministry added. "For the time being we do not envisage [production or capital expenditure cuts] but we continue to analyze the international environment and Opec decisions."
Opec members and non-Opec members led by Russia are scheduled to participate in the call on 9 April — originally scheduled for today — to discuss possible new production restraints after Saudi Arabia and Russia's failure to agree output cuts last month sent global crude prices into a tailspin.
Mexico's state-owned Pemex produced 1.64mn b/d of crude in February, but expects to increase output to 1.85mn b/d this year, down from a pre-virus target of 1.95mn b/d.
Global crude oil prices crashed to their lowest in around 18 years over the past two weeks as Saudi Arabia and Russia failed to agree on production restraints. The situation — that threatens to flood the market with supply — is further compounded by a demand-side shock precipitated by measures to try to stop the coronavirus pandemic.
Pemex has a budget of $16.7bn this year. While other state-owned oil companies across Latin America — including Colombia's Ecopetrol and Brazil's Petrobras — have announced capital expenditure cuts as the crude price crash endangers breakeven levels, Pemex has not.
Mexico's crude basket price that reflects a mix of its export grades dropped to a 21-year low of $10.37/bl on 30 March, well below Pemex's 2019 breakeven level of $14.33/bl.
While the price started to inch up in anticipation of a deal at this week's Opec meeting, at $20.48/bl it remains well below the $55/bl anticipated in Pemex's business plan.
Mexico's crude basket includes its export grade of Maya, as well as crude from the Cantarell and Ku-Maloob-Zaap fields.
