Mexico is producing oil at full capacity, and it expects to increase its supply by year-end to help stabilize worldwide oil prices, Mexican Finance Minister Jose Angel Gurria said here Tuesday.
"We expect to have some more supply on screen by the end of the year and we will offer it to the market to help to stabilize the markets, but right now we are at a full capacity, as (are) most of the oil producing countries," Gurria told reporters upon arriving at a downtown hotel here.
Gurria is in Montreal to attend a G20 meeting which opens with a working dinner late Tuesday, followed by a full-day of meetings Wednesday.High oil prices are not officially on the agenda of the informal group's meeting, but is nonetheless expected to be broached.
"We don't have it in the agenda, but as it happened in Brunei when finance ministers met, the question of oil became a very hot issue," Gurria said."Stability is the key word here, but stability doesn't mean (going back to the) prices we had in 1998, with barrels for eight dollars," Gurria added.
Mexico produces some 3.4 million barrels of oil per day, half of which is exported.With the exception of one of the oil producing countries -- Saudi Arabia -- almost all of the countries are producing at full capacity, so the supply needed to balance supply and demand will take time, he added.
Crude oil demand is high because of the approaching winter months in the Northern Hemisphere, severely depleted levels of oil reserves worldwide and the industry's concern about renewed Middle East violence and its impact on oil production.
The price per barrel of light sweet crude for December delivery slid 39 cents to $33.37 in New York on Tuesday.Earlier in the month, the price reached near 10-year highs, above $35, as market players worried that flare-ups in the Middle East could lead to an Arab oil embargo.—AFP.
©--Agence France Presse.
© 2000 Mena Report (www.menareport.com)