Mexico’s state-run oil concern is postponing some deep-water exploration projects in response to a steep drop in global crude prices, the company’s director said on Wednesday.
Emilio Lozoya, head of Petroleos Mexicanos, or Pemex, also said there will be personnel cutbacks at the company, with details to be made known in the coming weeks.
“There are concrete projects for exploration in some deposits in deep water, not in all of them, but those at greatest risk … if we have not started, they will be postponed,” Lozoya said in comments to local radio.
The announcement was the latest bad news for Mexico’s oil sector, which has been hit by crude prices’ slide to a near-six-year low in January, even as the country embarks on ambitious energy reforms that aim to modernize the industry by allowing private investment for the first time in decades.
From a high of more than $100 a barrel, the value of Mexican export crude sank below $40 earlier this year. On Tuesday it was trading at $50.57 a barrel, about $25 below the level where analysts say the country’s unconventional exploration and development projects can be profitable.
Recommended Content
Editors’ Picks
EUR/USD holds above 1.0700 after US data
EUR/USD struggles to build on Wednesday's gains and fluctuates in a tight channel near 1.0700 on Thursday. The data from the US showed that weekly Jobless Claims held steady at 208,000, helping the USD hold its ground and limiting the pair's upside.
GBP/USD fluctuates above 1.2500 following Wednesday's rebound
GBP/USD stays in a consolidation phase slightly above 1.2500 on Thursday after closing in the green on Wednesday. A mixed market mood caps the GBP/USD upside after Unit Labor Costs and weekly Jobless Claims data from the US.
Gold retreats to $2,300 despite falling US yields
Gold stays under bearish pressure and trades deep in negative territory at around $2,300 on Thursday. The benchmark 10-year US Treasury bond edges lower following the Fed's policy decisions but XAU/USD struggles to find a foothold.
Top 3 Price Prediction BTC, ETH, XRP: Altcoins to pump once BTC bottoms out, slow grind up for now
Bitcoin reclaiming above $59,200 would hint that BTC has already bottomed out, setting the tone for a run north. Ethereum holding above $2,900 keeps a bullish reversal pattern viable despite falling momentum. Ripple coils up for a move north as XRP bulls defend $0.5000.
Happy Apple day
Apple is due to report Q1 results today after the bell. Expectations are soft given that Apple’s Chinese business got a major hit in Q1 as competitors increased their market share against the giant Apple.