Mexican president calls on Russia, Saudi Arabia to end oil price war

(C) Reuters. Mexico’s President Andres Manuel Lopez Obrador speaks during a news conference at National Palace in Mexico City

MEXICO CITY (Reuters) – Mexican President Andres Manuel Lopez Obrador on Saturday called on Russia and Saudi Arabia to reach a deal soon and end their oil price war to avoid deepening the oil price crisis.

Mexico and others have seen the prices for their crude exports battered in recent weeks after the fallout from the new coronavirus eroded demand and major oil producers could not agree on how to respond.

“How can Russia and Saudi Arabia not come to an agreement in order to stop oil price declines that are further deepening the crisis?” Lopez Obrador asked. “Where is the responsibility toward humanity? Where is the universal brotherhood? Where are the so-called heads of state?”

Mexican Energy Minister Rocio Nahle had told Reuters on Friday that oil prices would not stay this low, and that the oil price crash did not merit a change in strategy.

Even so, Mexican national oil company Petroleos Mexicanos, or Pemex [PEMX.UL], slid deeper into “junk” territory after Fitch Ratings cut the rating of its bonds by another notch to BB with a negative outlook.