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Commodities

Mexico president says Pemex oil production stable, despite report showing output down

FILE PHOTO: A sign of state-owned company Petroleos Mexicanos (PEMEX) is seen at a gas station in Monterrey, Mexico June 17, 2019. REUTERS/Daniel Becerril/File Photo

MEXICO CITY (Reuters) - Mexican President Andres Manuel Lopez Obrador said on Tuesday that production at state oil company Pemex has stabilized, despite a report showing that output fell in May from April.

Pemex, which has long struggled to reverse declining production, reported on Monday that its crude output dipped 0.7% in May.

“I have different information,” Lopez Obrador said at his daily news conference. “Not only has (the fall in production) stopped, but it has stabilized.”

He added that Pemex has saved 30% in operational costs from reducing corruption.

Lopez Obrador has promised to revive the company, which is saddled with some $106 billion in debt, by cutting its tax bill and lifting oil production by at least 50% by the end of his administration in 2024.

Reporting by Daina Beth Solomon; Editing by Frank Jack Daniel and David Gregorio

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