MEXICO, IN SWITCH, WILL LIFT OIL PRICE
Mexico announced today that it would raise its oil prices early next month and warned that buyers unwilling to pay the new price might permanently forfeit Mexico as an energy source. The announcement came just two weeks after Mexico lowered its oil prices $4 a barrel, becoming the first major oil exporter to reduce its official price in the face of the current glut on world oil markets. Since then, other oil producers, among them Ecuador, Britain and Norway, have lowered the export prices of their crude oil, and the price of oil on spot markets has dropped sharply. Mexico's announcement today did not indicate whether the full decrease of $4 a barrel would be reinstated, although this was the implication.The decision went in the face of the downward trend in world oil prices, brought on by the world oversupply of oil and declining demand.