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Pemex Observes 62nd Anniversary Amid Debate On Mexico's Leadership Role In Global Oil Markets

LADB Article ID: 53949
Category/Department: Mexico
Date: 2000-03-22
By: LADB Staff

President Ernesto Zedillo's administration celebrated the 62nd anniversary of the state-run oil company PEMEX amid growing debate on whether Mexico is properly exercising its new leadership role in the global oil market. Mexico has gained clout in the oil market because of its joint initiatives with Saudi Arabia and Venezuela during the past two years that led oil-producing nations to reduce the supply of crude oil on the market. The three countries launched their efforts in March 1998, when global oil prices had fallen sharply (see SourceMex, 1998-03-25). Global oil producers subsequently reduced production and exports in 1998 and again in early 1999 (see SourceMex, 1998-06-10, 1999-03-24). The reductions contributed significantly to depleting global oil inventories, which caused prices to skyrocket by the first quarter of 2000. For Mexico, the effect of the price increase has been dramatic. Mexican crude oil was selling at an average of more than US$27 per barrel as of March 2000, triple the average price of US$9 per barrel in March 1998.

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