Mexico's oil revenue fell 3.5 percent in 2014

Lower oil earnings helped to push Mexico's debt to $451 billion

Lower oil earnings helped to push Mexico's debt to $451 billion

MEXICO CITY - Mexico's oil revenue decreased to $75 billion from January to November, a decline of 3.5 percent compared with the same period last year, the finance ministry said late Tuesday.

The decreased oil earnings, which comes mainly from national oil company Pemex’s sales of oil and petroleum products, and from tax revenue on gasoline and diesel, helped to push Mexico’s budget deficit to $31 billion in 2014.

The decline can partly be explained by a 3.1 percent fall in crude oil production in 2014 compared with 2013.

It was also attributed “to the lower average export price of Mexican crude, from $91.90 per barrel this year compared to $99.70 per barrel for the same period in 2013,” according to the finance ministry.

Some of the losses in oil revenue was partly recouped by the rise in natural gas prices which was “on average 21.5 percent higher from January to November 2014 than the same period last year.”

Domestic debt increased by $28.5 billion while foreign debt grew by $14.5 billion, as a result of the loss in oil income.

Overall debt rose to $451 billion, about 38 percent ofMexico’s gross domestic product calculated for 2014.

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