Mexico curbs oil output, cites US refinery damage

MEXICO CITY: Mexico’s state oil company said it is temporarily reducing oil production because U.S. refineries damaged by Hurricane Ike have canceled or delayed shipment orders.

Petroleos Mexicanos, or Pemex, said it lowered output by 250,000 barrels a day on Tuesday. But the company said Wednesday that it expects production to be back to normal by the end of the week as refining capacity along the Texas Gulf Coast recovers.


Pemex produced an average of 2.75 million barrels a day in August, the latest available output figure.

The reduction comes as Pemex is already struggling with sagging production. Falling output helped cut exports to 1.43 million barrels a day during the first eight months of 2008, down 16 percent from the year-ago period.

Oil income makes up about 40 percent of Mexico’s annual budget.

AP