Mexico’s state oil company Pemex increased crude production to 1.745 million barrels per day (MMbbl/d) in March while processing more at its domestic refineries, according to official data seen by Reuters on May 5.
Mexico agreed to a 100,000-bbl/d output cut as part of an initiative by the OPEC+ group to push up plummeting oil prices by withdrawing barrels from an oversupplied market. The cuts will be put in place this month.
Mexico’s energy minister, Rocio Nahle, said the nation would cut output only during May and June.
The reduction is expected to mostly affect newly drilled oil fields while a larger portion of shallow-water production by Pemex, as the company is known, would be used for domestic refining.
Pemex’s crude production has consistently grown this year from 1.724 MMbbl/d in January, including shared oil fields, official figures showed. Last week, the company reported a massive loss of nearly $24 billion in the first quarter and announced a $1.9 billion cut in its investment budget.
Pemex’s crude processing at its refineries rose to almost 600,000 bbl/d in March from 464,018 bbl/d the previous month, the official data showed. Pemex said its total production of fuel averaged 717,400 bbl/d last month.
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