"Mexico Oil Price Drops Below Production Cost"

Welcome to 2016.

Mexican oil prices in the international market have dropped to $22.07 a barrel, local media reported.

MOSCOW (Sputnik - Jan 12, 2016) — The state-run Pemex oil company is losing 93 cents for each barrel sold, as it costs $23 to produce, the Financiero news portal said Monday.

In December, Mexican authorities announced that Mexico oil revenues decreased by 38 percent in the last 10 months compared to the same period in 2014.

The sharp decline in the country’s state revenue is due primarily to a drop in international oil prices, an 8 percent decrease in oil production, and a 34 percent drop in gas prices.

Recent turbulence in the Chinese stock market has caused a knock-on effect across the world. China's trade suspension last week was followed by Wall Street sliding one percent and European stock markets slumping by two percent.

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Mexican President Enrique Pena Nieto has announced upcoming investments into the country’s refineries of $23 billion.

MOSCOW (Sputnik - Dec 9, 2015) — The refineries in the states of Hidalgo, Oaxaca, Nuevo Leon, Tamaulipas, Veracruz and Guanajuato will receive the funds in the next three years.

"Pemex [state oil company] and the government will continue investing in his huge enterprise, which is property of all Mexicans," the president said Tuesday announcing the investment.

According to Pena Niet, the investment became possible due to the reform of the country’s energy sector. The modernization of the refineries will allow to significantly cut down the harmful emissions, and will create tens of thousands of job, the president said.

Since December 2013, Mexico has undertaken major energy reforms, and for the first time in almost 80 years the state-run oil company Pemex and the Federal Electricity Commission (CFE) have been granted permission to make deals with private companies, attracting private investment in the development, extraction, transport and storage of oil, gas and electricity.

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