Pemex’s export sales to the United States amounted to 303.8 billion pesos in 2020, representing 31.9% of its total sales and 68.2% of its export sales for the year.
Since the Mexican economy is strongly influenced by the United States economy, the policies that the United States government may adopt can negatively affect economic conditions in Mexico.
In turn, these developments could have an adverse effect on Pemex’s financial condition, and on its operating results and ability to pay its debt.
Economic conditions in Mexico are highly correlated with economic conditions in the United States due to the physical proximity and high degree of economic activity between the two countries in general, including trade initially facilitated by the North American Free Trade Agreement, or NAFTA, and now by its successor, the USMCA.
Pemex
As a result, political developments in the United States, including changes in government administration and policies, may also have an impact on the exchange rate between the US dollar and the Mexican peso, economic conditions in Mexico, and the markets of the United States. global capital.
Pemex is a state production company of the Federal Government of Mexico.
The Federal Congress of Mexico established Petróleos Mexicanos by decree on July 20, 1938.
Its operations are carried out through three main subsidiaries, which are Pemex Exploración y Producción, Pemex Transformación Industrial and Pemex Logística.
Petróleos Mexicanos and each of the subsidiary entities are entities of the Mexican public sector empowered to own property and conduct business in their own name.
In addition, several subsidiary companies are incorporated into the consolidated financial statements.
International relations
Although Mexico is not a member of OPEC, from time to time it signs agreements with OPEC and non-OPEC countries to reduce the world’s supply of crude.
More recently, on April 12, 2020, Mexico entered into an agreement with OPEC + under which it agreed to reduce its crude production by 100,000 barrels per day over a two-month period starting May 1, 2020.
