Mexico will cut government spending by $8.4 billion this year because of a drop in revenues due to declining oil prices.
Finance Minister Luis Videgaray also said Friday the government will put on hold plans to build a high-speed rail project that has been marred by allegations of favoritism.
Mexico has seen prices for its oil fall in recent months from around $100 to $38.42 per barrel. The government relies on oil revenues for about a third of its budget.
A Mexican firm allied with Chinese companies won the high-speed rail project in November. But the contract award was cancelled just before local media revealed the Mexican firm built a mansion for First Lady Angelica Rivera.
Another train project in the Yucatan peninsula has been cancelled.
I was told the USA just found the largest oil reserve in existance. Is this true?
Yes, in fact even in 2012 a US oil company discovered another reserve that holds more oil than OPEC. Many times political pressure and environmental concerns limit the amount of oil that can be produced from these finds. However the US is producing more oil today than ever before, which is part of the reason oil has declined. The US is the largest consumer but importing less and even exporting to Mexico.
:) thanks
If oil has dropped so much why are we paying the same?