High Oil Prices Benefit Mexico
The high prices of Mexican oil, overvalued at nearly 20 dollars due to geopolitical factors, are temporarily benefiting the domestic economy, Energy Secretary Fernando Canales said on Friday.
According to the official, such effect results from the fact that the country exports an average of 1.6 million barrels a day, but the situation will not be favorable for the mid and long terms as it may decrease the international growth rate and reduce the people´s quality of life.
Canales explained that oil prices skyrocketed due to the armed conflict between Lebanon and Israel, but the price of gasoline will rise just four percent, lower than in the United States and other countries.
In order to increase supply, he added, the federal government will pass an engineering project on to the next administration to build a new refining facility at the Salina Cruz plant in Oaxaca.
Source : plenglish.com
Will Energy Prices Zap Mexico?
Higher oil prices have usually been a boon to the economy. Trouble is, the country imports much of its refined fuel
At first blush, the hike in oil prices wrought by the twin tempests of late summer -- hurricanes Katrina and Rita -- is good news for Mexico. After all, costlier oil has always meant more money for the government. And there has been a strong positive correlation between the strength of the Mexican peso and the price of crude.
But in fact, the runup in energy prices poses problems for the Mexican economy. For starters, Mexico imports
Oil Production Down 78 Percent in Gulf of Mexico
The U.S. government says oil production in the Gulf of Mexico was nearly 80 percent below normal as of Saturday, five days after Hurricane Katrina tore through the region.
A report from the U.S. Minerals Management Service said Katrina had cut oil production in the Gulf by about 1.18 million barrels of oil per day. It said more than 280 offshore oil-drilling rigs and platforms remained evacuated.
The figures represent a slight improvement from Friday, when oil production in the Gulf was nearly 90 percent below normal.
Katrina's disruption to Gulf-area oil production and refineries
Mexico's Fox Seeks to Use Oil Revenue to Cut International Debt
Mexican President Vicente Fox's proposed spending plan for 2006 seeks to use revenue from record high oil prices to reduce the nation's international debt to its lowest in more than three decades.
``High oil revenue has a non-recurring nature, so we must use it to strengthen our infrastructure or save it to mitigate the impact of a possible decline in oil prices on public finances and the national economy,'' Fox, 63, said in a message to legislators in the budget.
Fox's plan would allow Mexico, the world's sixth-largest oil
Oil leaps as Wilma menaces Gulf of Mexico
Oil leapt more than $1 yesterday as another tropical storm gathered strength in the Caribbean, menacing US rigs and refineries already rocked by the most active hurricane season in decades.
Tropical Storm Wilma, the 21st named storm this year, could move into the oil-rich Gulf of Mexico by the end of the week, the US National Hurricane Centre said yesterday.
Rising tension in Iran, the world’s fourth-biggest oil producer, also buoyed prices after twin bombings in the southwest oil city of Ahvaz. Tehran blamed the blasts on Britain.
US crude was up $1,14
Mexico's Bolsa Rises to Record, Led by Walmex: Latin Stocks
Mexico's benchmark stock index rose to a record for a third day, led by retailer Wal-Mart de Mexico SA, on expectations that oil revenue will sustain growth in Latin America's biggest economy.
The Mexican Bolsa rose 120.64, or 0.8 percent, to 15,151.26 at 12:40 New York time. Wal-Mart de Mexico, Latin America's biggest retailer, rose for a fifth day in six as Chief Executive Eduardo Solorzano elaborated on the company's expansion plans in a speech to investors in New York.
The Bolsa is gaining because of global demand for the
Rita shuts down oil production in Gulf of Mexico
The impending strike of Hurricane Rita on the Texas coast poses as much of a risk to chemical output as it does to oil production and refining, analysts say, threatening shortages of key chemicals in coming days and weeks.
An estimated 72 percent of all U.S. production capacity for ethylene was in the strike area of Rita.
"About 72 percent of U.S. ethylene capacity is in the risk area, while 26 percent of U.S. refinery capacity is there," said an analyst .
The devastating effects of Katrina on the Gulf of Mexico also pushed natural
Oil leaps as new storm menaces Gulf of Mexico
Oil leapt by $1.50 on Monday as another tropical storm gathered strength in the Caribbean and menaced US rigs and refineries already rocked by the most active hurricane season in decades. Tropical Storm Wilma, the 21st named storm this year, formed from a depression in the Caribbean and could move into the oil-rich Gulf of Mexico by the end of the week, the US National Hurricane Center said on its website.
The last time there were so many named storms was 1933. Vulnerable oil platforms and refineries along the Gulf of Mexico
Mexico Bonds May Extend Rally as Oil Prices Gain, Rating Rises
Mexico's U.S. dollar-denominated bonds may extend a 3 1/2-month rally as the country benefits from record oil prices and improving credit quality.
``We're more optimistic on Mexico relative to the market as a whole,'' said Christian Stracke, an emerging-market debt strategist at New York-based CreditSights Inc. ``The emerging- markets sector as a whole is overbought and we've seen it starting to pull back a bit. As the market pulls back, safer credits like Mexico tend to outperform.''
Record oil prices helped Mexico, the world's fifth-largest oil producer, boost international reserves
Crude Oil Is Little Changed as U.S. Gulf of Mexico Output Drops
Crude oil was little changed, rebounding from the session's lows, after a government report showed that U.S. oil production fell in the Gulf of Mexico.
Oil production was 901,726 barrels below pre-storm levels, almost 5 percent more than reported yesterday, the Minerals Management Service said in a daily report. Prices declined earlier today on an Energy Department report that showed U.S. supplies of crude oil and petroleum products declined less than expected in the wake of Hurricane Katrina.
``There are obviously still some problems out in the Gulf,''
ATP Apparent High Bidder on Gulf of Mexico Lease Block
ATP Oil & Gas Corporation (NASDAQ:ATPG) today announced it was the apparent high bidder out of three bids submitted to the Minerals Management Service (MMS) on Green Canyon Block 37 at the Central Gulf of Mexico (GOM) Offshore Lease Sale held on March 15, 2006 in New Orleans. If the block is awarded, ATP's financial outlay will be $3.3 million with the Company owning a 100% working interest and serving as operator of the property.
"ATP continues to follow a consistent strategy of acquiring for development properties that have already shown
