Mexican oil locks in at US$ 39.69 a barrel, up US$ 1.92

Mexican crude oil is up US$1.92 today, locking in the price per barrel at US$39.69, reports Mexico's state-owned oil company, Pemex.

Banco Base says the increase is due to OPEC agreeing to freeze output to about 32.5 and 33 million barrels per day, marking its first cut in production in over 8 years.

However, OPEC still faces hurdles in implementing the cut in production since it has yet to establish the cuts that each individual member country will have to make as part of the agreement.

In addition, this increase in crude oil prices may be short lived, since the cut in production is minimal and demand for oil and energy continues to be weak.