Mexico to Shut Down Wells a Week After Refusing Deep OPEC+ Cuts
- New wells don’t lose pressure when valves are closed: AMLO
- Mexico’s spot price for Maya crude was negative on Monday
Workers change a drill pipe on an oil drilling rig operated by Petroleos Mexicanos off the coast of Ciudad del Carmen, Mexico.
Photographer: Susana Gonzalez/Bloomberg
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With crude prices collapsing, Mexico’s president says his country will shut down new wells in a move that comes just over a week after he almost wrecked a global oil deal by refusing to make deep output cuts.
The country invested last year in drilling new wells, Andres Manuel Lopez Obrador said during his daily morning press conference on Tuesday. But “now that oil has no value, we can shut down the valves,” he added. His reasoning: Valves on newer wells “don’t lose pressure” like those on older wells.