The oil price rally triggered by the Middle East conflict will directly impact Mexico's government budget and could affect the massive support for state-owned company Pemex, 9fin sources said. However, Mexico has continued funding Pemex through recent oil market shocks to help it meet debt maturities, and will likely prioritize this aid over other spending, the sources agreed.
Oil prices rallied over the weekend, surpassing $100 per barrel for the first time in more than three years, as the war between Iran, the US and Israel has escalated and affected other countries in the region.
"Six days into the Iran war, hostilities are still increasing, energy flows remain heavily affected and there’s no clear sign of a potential deescalation in the coming days," said analysts from US bank Barclays in a report published on 6 March. "Oil on water in ships stuck in the Middle East Gulf because of the hit to flows has increased by 85 mb (million barrels) since the conflict began."
Pemex's oil benchmark surged over the weekend and reached $88.96 per barrel on Monday (9 March), around $5 more compared to Friday’s close. WTI and Brent went through a rollercoaster on Monday, hitting around $120...
