Mexico's Pemex says Mexican oil basket for export closed at $17.70 per barrel on March 19

 Mexican state oil firm Pemex said on Thursday that the nation's oil basket for export closed at $17.70 per barrel on March 19, up 21.7% from $14.54 a barrel on Wednesday.

Meanwhile, the Mexican Foreign Minister Ebrard said after talks with Pompeo, "I proposed that measures to contain coronavirus do not paralyze economic activity."

Key notes

• Mexican Foreign Minister Ebrard says proposed that the US–Mexico border remains open to trade and work.
• Mexican Foreign Minister Ebrard says proposals were met with a 'good disposition', will inform on progress tomorrow.
• Mexican Finance Minister Herrera says oil prices will rise once coronavirus crisis is resolved, Saudi Arabia and Russia resolve differences.
• Asked about risk to Mexican public finances due to Pemex credit rating, Mexican Finance Minister says risk exists but it is low due to oil hedging program.

FX and market implications

As international crude prices have been hammered by a price war pitting Saudi Arabia against Russia, earlier in the week, Mexico's energy minister, Rocio Nahle, hinted on Wednesday at the country's "willingness" to cut crude oil output in a bid to support prices, but it was unclear whether any new voluntary curbs might go beyond already falling production. Nahle signalled an openness on Wednesday to voluntary production cuts, but without going into any detail.

The Mexican peso has been hit hard by the rush to the dollar and is highly exposed to the commodity cycle. The MXN had been the darling of the EM investment world over the last twelve months and the closing of the US border with Canada will not help the MXN outlook but with the US–Mexico border remaining open to trade and work is a plus and should help to slow the upside in USD/MXN.