Worldwide Coronavirus Epidemic Causes Mexican Oil Price Drop
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On Friday, the first case of the COVID-19 in Mexico was reported. The threats of the deadly virus continue to increase in the country and other nations in the world say an article from Mexico Business.

The Impact of the Global Coronavirus Epidemic to Mexican Oil Trade 

The threats of the dangerous coronavirus had significantly impacted the oil prices on a worldwide scale.

The crude oil mix of Mexico was not saved from the impact with a $1.41 drop of its price per barrel on Thursday. When the day closed, the crude mix of Mexico had a closing value of $42.05 per barrel.

The price drop of the Mexican crude oil mix is one of the major oil mixes that also experienced the decline. Additionally, the WTI oil mix also lost $1.25 on it per barrel price.

As the coronavirus epidemic continues to spread globally, oil prices had been observed to be significantly falling.

Based on the information from Oilprice.com, the per barrel price of the Mexican Crude oil mic had dropped from $49.50 to $42.05 from January 20 to February 27. Meanwhile, the price of the WTI crude had fallen from $53.88 to $44.24 in the same duration.

Wood Mackenzie provided an outline of issues with global oil prices. Manufacturing shutdowns can indeed affect the balance sheet of businesses. Also, project delays provide insignificant effects on a global portfolio. However, price drops provide more significant effects compared to the previously mentioned situations.

PEMEX's reports Doubled Loss

In 2019, PEMEX showed an unimpressive financial report as its losses had increased by 92%. The loss incurred by the company had increased in 2019 from its MX$346.1 billion loss in 2018. For almost half a decade, this is the worst drop for the company's financial results.

One of the primary reasons for the loss was a 16.50 decline in fuel sales. The perceived cause of the decrease in sales was drop off the first-hand gasoline price.

Additionally, the loss is also alleged to be caused by the expansion and growth of its competitors, the lowered price of exporting oil products, and the volume of crude oil being traded in the competitive market.

The drop in the oil prices in the country was not prevented. The results came despite the intense efforts of the current president of Mexico President López Obrador and his administration to decelerate the mounting debt of the NOC.

The efforts of López Obrador include the act to refinance its total debt.

Production in Mexico Attains Milestone

According to statistics from CNH, the country-wide production of oil in Mexico had reached its highest in a period of 15 months in January. It was reported that 1.724MMb/d were produced.

This number increased from October 2018's record of 1.744MMb/d.

Despite the effects of the coronavirus epidemic to various sectors worldwide, this stabilized production is a good sign for the goals of the PEMEX and the country.

They aim to decelerate the drop of production and affect the increase of the rates to 2.6MMb/d by 2024.

Production Growth of Natural Gas

The natural gas production in Mexico had increased by 7.7% in a period of 12 months at a rate of 4.983Bcf/d in January 2020.

PEMEX had risen its extraction ration by 6.4 %. Private agreements had also raised their shares by 39% in the same period.