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Impacts in Mexico due to falling oil prices 2:48
(CNN Spanish) - The President of Mexico, Andrés Manuel López Obrador, announced on Tuesday that, in conjunction with the Ministry of Finance (SHCP), the Ministry of Energy (Sener) and Petróleos Mexicanos (Pemex), he is working on a new strategy for the energy sector after the collapse in oil prices.
“Now it is closing (valves) and our basic production for the refineries until the price of crude oil improves. In addition, we have insurance, in the case of Pemex, not for everything that is produced, but for a significant percentage; and in the case of the Treasury it is 100% ”, said López Obrador during his morning conference.
The president assured that the investments made to rehabilitate the refineries will allow a million barrels per day to be processed in May.
“We are going to be able to produce more gasoline in Mexico and stop buying gasoline abroad. And this helps us temper the crisis due to the collapse in crude oil prices, ”said López Obrador.
According to Pemex, the Mexican export mix was quoted this Monday at US $ -2.37 per barrel. And on Tuesday, at $ 7.12 dollars.
Banco de México (Banxico) acknowledged on Tuesday that “the covid-19 pandemic and its negative implications for global economic activity, coupled with the abrupt drop in oil prices, have had a negative impact on the behavior of the financial markets of the country".
The Board of Governors of Banco de México approved a series of measures aimed, as they point out, at providing liquidity to improve the functioning of domestic markets, strengthen channels for granting credit in the economy and promote the orderly behavior of debt markets. and changes in the country.
Forecasts for Latin America
The projections for the region are not encouraging. In its most recent report, the Economic Commission for Latin America and the Caribbean (Eclac) indicates that the coronavirus pandemic will lead to the largest economic contraction in the region in decades, with a drop of -5.3% for this year.
"The effects of the covid-19 will generate the largest recession that the region has suffered since 1914 and 1930. A strong increase in unemployment is expected, with negative effects on poverty and inequality," said ECLAC Executive Secretary Alicia. Bárcena.
Regarding Mexico, the Commission indicates that not only will the drop in oil prices have a negative effect, but also the slowdown in the United States economy will impact exports.
Despite this scenario, President Andrés Manuel López Obrador is optimistic, because he believes that the fight against corruption and the good management of public finances has allowed Mexico to have the necessary resources to emerge afloat.
Pemex