REFILE-Mexico resists oil output cuts but scrambles for storage space as glut grows [Reuters]
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Source: Reuters
REFILE-Mexico resists oil output cuts but scrambles for storage space as glut grows (Corrects headline to read “scrambles” instead of “scrounges”) By Adriana Barrera and Marianna Parraga MEXICO CITY, April 30 (Reuters) - With oil still gushing from its fields and no immediate plans for substantial output cuts, Mexico’s state company Pemex is considering storing crude in salt caverns and depleted wells, sources familiar with the matter said. The plan could double state company Petroleos Mexicanos’ 11 million barrels of crude storage capacity, according to a former company executive. But it could take more than a month to prepare the new storage sites, and available space could run out within days. Global oil prices have crashed as demand has tanked during the coronavirus epidemic. Producing nations have slashed output either with planned cuts as with OPEC, Russia and their allies; as drilling has become unprofitable as it has for many U.S. shale producers; or after energy companies hav
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