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News > Mexico

Mexico: Surge in Crude Oil Prices Amid Situation in Ukraine

  • Increase in Mexican crude oil prices. March. 9, 2022.

    Increase in Mexican crude oil prices. March. 9, 2022. | Photo: Twitter/@ArthurBenta

Published 9 March 2022
Opinion

As a result of the sanctions imposed on Russia, the price of Mexican export crude oil has increased by 35.1% amid the current situation in the European continent.  

The Mexican crude reached its highest price in 13 years since Russia launched its special military operation in Ukraine. The cost per barrel rose by US$3.96 to hit US$119.62 a barrel.

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Latin America Shows Divided Opinions on the Russia-Ukraine War

This price increase has been caused by economic sanctions on Russia rather than the conflict itself. The United States informed Tuesday of a ban on Russian oil and gas imports, limiting this way the reserve available to the world's largest economy. For its part, the United Kingdom said it would stop importing Russian oil and the European Union presented a plan to cancel Russian gas gradually. 

Moscow has revealed that sanctions could lead to an increase of $300 in world prices. 7% of the oil used in the U.S. comes from Russia, and Russia produces more than 10% of the global crude 

 

Ben Laidler, CEO of Tower Hudson Research and global strategist at eToro investment site, said that rising oil prices indicated a gloomy global economic outlook in the short term, which would result in inflation and slow growth.

Inflation in Mexico reached a 20-year high of 7.37% in November and has remained above 7%. The economy grew by more than 5% in 2021, but experts surveyed by the Bank of Mexico foresee a growth of 2.2% in 2022. However, the International Monetary Fund (IMF) expects a 2.8% growth this year.

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