Volte face
Article Abstract:
Mexico has developed links with the Organization of Petroleum Exporting Countries (OPEC), a petroleum producers' cartel, and this has strengthened OPEC, which has been able to push up petroleum prices. The rise in petroleum prices has increased Mexico's government revenue. Restraints on production may continue, and economists are concerned about their inflationary potential. Mexican energy minister, Luis Tellez, was in favor of market reforms, but appears to have changed his views. He argues that the link with OPEC was needed for Mexico to be able to repay its debts and manage its fiscal policy. Relations with the US could be affected, and non-OPEC sources are more likely to be developed if the price stays high.
Publication Name: The Economist (UK)
Subject: Business, international
ISSN: 0013-0613
Year: 2000
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Drowning in oil
Article Abstract:
Petroleum prices have dropped since 1980, and the fall has been especially sharp in the two years to 1999. This benefits consumers, but not the poorer countries that produce petroleum. Low petroleum prices can lead to instability, and this could result in an interruption of supply and an oil shock. There is a need to carry out research into alternative energy sources. Tax on petroleum can be raised more easily when prices are low, and this can help curb consumption. Cheap petroleum should not be taken for granted.
Publication Name: The Economist (UK)
Subject: Business, international
ISSN: 0013-0613
Year: 1999
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Still kicking?
Article Abstract:
Petroleum producers from within and outside the Organization of Petroleum Exporting Countries have agreed to control their output, and this has helped push up petroleum prices. There could still be problems from Iraq, which is limited in how much it can export due to sanctions imposed by the United Nations. Iraq aims to boost its output and has reserves second only to those of Saudi Arabia, which itself needs revenue from selling petroleum for its domestic budget.
Publication Name: The Economist (UK)
Subject: Business, international
ISSN: 0013-0613
Year: 1999
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