February 9, 2016 / 1:11 AM / 3 years ago

UPDATE 1-Mexico government should prepare for low oil price scenario ahead -Carstens

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MEXICO CITY, Feb 8 (Reuters) - Mexican central bank governor Agustin Carstens said on Monday that Mexico’s government should start preparing itself to face low oil prices ahead.

Finance Minister Luis Videgaray said earlier on Monday that the government should get ready for lower spending next year, as government revenues have been hit by a slump in oil prices and weaker production from state oil giant Pemex.

Speaking to local radio, Carstens said that even if oil prices recover, it is very possible that they remain below $49 per barrel, the price that Mexico has locked in for about half its crude exports this year through its annual hedging program.

“So next year the government would face some pressures and that is why I believe it is prudent that the federal government ... start to prepare to confront this scenario.” (Reporting by Noe Torres; Editing by Sandra Maler)

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