This week, PEMEX showed some positive signs. While production is still lower than it was in the beginning of 2017, the NOC managed to put a break on its fall in production, even showing a predicted increase towards the end of the year. Meanwhile, tensions internationally continue to cause unrest in the market, whereas it looked to stabilize earlier in the week.
PEMEX shows resilience in reversing its fortune
Although developments in the playing field suggest PEMEX’s position will not have the resilience it had in the past , the NOC does not accept defeat. This week, PEMEX’s Director General showed figures confirming they have reversed the fall in oil production, with improvements predicted towards the end of the year.
PEMEX gasoline production marked an increase of 31 percent between December 2018 and August 2019 . This news is welcomed by Finance Minister Arturo Herrera, who when questioned by the House of Representatives stated that ¨investors believe in PEMEX. ¨
Added to this, explorations are predicted to yield even more positive results by incorporating 15,836 billion barrels from 2P reserves since 2009.
Oil prices remain unstable despite improvements in Saudi Arabia. Earlier this week it became clear that Saudi Arabia’s ability to export oil had not been affected severly. The kingdom received further support from the US in preventing further attacks and took diplomatic steps to reach a ceasefire, further decreasing the possibilities of new strikes. This led to a drop in Brent oil prices, although news of a possible impeachment process against Trump increased uncertainty in the markets.