Oil sector, international context and implications for public finances in Mexico

Abstract

In the raw materials or commodities market, oil plays a predominant role, with a demand of around 30 billion barrels per year, therefore, the transfer of resources at an international level due to the dynamics of its extraction, refining and export process play an important role. The very important role in the processes of industrialization, price formation and public finances, the geopolitical structure at the international level is fueled in large part by the implications in the dynamics of exportation, refining and management of the industry in financial markets. Mexico has historically been a country with high dependence on the oil and energy sector, however, decreasing, which to a large extent has depended on the strength of sectors additional to raw materials. The objective of this article is to carry out an analysis that allows understanding the dynamics of the oil market and its implications for public finances. There is a high but decreasing dependence on public finances, however strong in its implications on the Mexican GDP.