WILSON CENTER | No one could have predicted a worse-case scenario. Amidst the COVID-19 pandemic, the OPEC+ market stabilization agreement broke down. The virus collapsed oil demand, whilst the war over market share slashed oil prices by 80%. Forecasts see Brent around $12 dollars a barrel for 2020. The Mexican basket would go below $10db, providing a major blow to the federal budget and to PEMEX, despite hedge protections.
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