WASHINGTON | Donald Trump on Friday confirmed that the United States had agreed to help Mexico to reach its quota of reduction of oil production to reach a global agreement on producing countries and curb the price fall.
“We agree to reduce production. And they agree to do something for us in the future, ” said the american president.
Donald Trump has hinted that he had agreed to lower u.s. production of 250 000 barrels per day, as stated by his mexican counterpart. “It has already done,” he stressed, referring to the decline of production in the United States due to the falling demand.
It was not clear Friday how the american president could do to reduce the production of 250 000 barrels per day out of a total of about 13 million barrels a day.
In the United States, the production is in the hands of private companies and the rules of the competition prevent them from coordinating.
The president seems to feel that the thing will be (or has already made) naturally because of the sudden drop in demand.
The weekly report on crude inventories, released Wednesday by the u.s. Agency for energy information, has revealed a fall in production in the United States.
It went from 13 million barrels per day (mbd), a record level, which it maintained from January to 12.4 mbd.
Andrés Manuel Lopez Obrador, had said earlier Friday that it had reached an agreement with his american counterpart, on the initiative of the latter.
The mexican president said that his country will reduce its production of 100 000 barrels per day and that the United States would, on their side, reducing their 250 000 barrels per day compared to their previous commitments to compensate for the part mexican.
Mexico was indeed excessive effort, which it was claimed (reduction of production of 400 000 barrels per day), compared to other countries, to reach a global agreement reduction of about 10 million barrels per day between producing countries and is currently being negotiated.