Mexico joins OPEC in boosting oil exports

www.islandpacket.com The Associated Press Published Monday, January 13th, 2003

MEXICO CITY (AP) - Mexico will raise its crude oil exports an expected 7 percent as of Feb. 1 as part of efforts by international producers to counter supply concerns in the market, the energy department said Monday.

The department said in a news release that measures taken in late 2002 haven't had the expected effect "because of the increasing instability in world supply, with a consequent volatility in prices."

Mexico plans to raise crude oil exports to 1.88 million barrels a day, compared with the target of 1.76 million barrels daily for January.

Monday's decision follows a meeting of the Organization of Petroleum Exporting Countries, in which members agreed to raise output quotas by 1.5 million barrels a day to 24.5 million barrels daily.

The OPEC meeting was aimed at addressing high crude prices, which have been pressured by the general strike in Venezuela and expectations of a U.S. attack on Iraq.

Mexico's energy department said the decision to raise exports complements the OPEC move, and will "contribute to stabilizing the world oil market and guarantee a continuous and secure supply."

State oil monopoly Petroleos Mexicanos, also known as Pemex, exported an average of 1.69 million barrels a day of crude oil in the second half of 2002, out of a production of around 3.2 million barrels daily.

Pemex plans to raise its crude production to 3.5 million barrels a day this year.

Mexico isn't a member of OPEC, but in recent years has cooperated on output levels with OPEC and with other independent producers, including Russia and Norway.