Category Archives: Energy

The worst case price scenarios for Mexico

Oil barrelsFinancial Times – You don’t have to look far to see the impact on Mexico of falling oil prices (now close to a five-year low): just take a look at the trade balance of state giant Pemex . It slumped by half in one month, to $656 million  in October from $1.3 billion in September, and that was before the combination of Mexico’s lower production and lower world prices really began to bite.

So now would be a good time to take a cold look at how much damage falling prices could really do to Mexico as it prepares to open up its oil sector to private investment, what Mexico could do about it, what wider impact that could have, and what the US and the International Monetary Fund could do to help.

Cydsa entering new energy ventures with gas storage cave

Bloomberg – Cydsa is diving into new energy opportunities at home. The maker of products ranging from refrigerant gases to acrylic yarn announced a joint venture with Petroleos Mexicanos to store liquefied petroleum gas in a salt cavern for 20 years, at a planned cost of about $130 million.

How Mexico, Not Saudi Arabia, Could Drive Oil Prices Higher

The Street – With prices of crude oil at fresh five-year lows, investors are wondering when Saudi Arabia might finally cry uncle, cut oil production and reverse the dramatic slide in oil prices. Yet Mexico, a non-OPEC country and third largest exporter of oil to the U.S. behind Canada and the Saudi Arabia, could have nearly as much near-term influence on oil prices as Saudi Arabia if they cut their own production.