On 10 July Mexico announced a fresh round of price cuts involving both light Isthmus and heavy Maya crudes. As from 1 July, the Mexicans have introduced a system of varying f.o.b. prices according to three different market destinations, as follows ($/B):

  Crude May June _________July_________ USA Europe Far East  Isthmus(34°) 27.75 26.75 26.75 26.25 26.50 Maya(27.7°) 25.50 24.00 23.50 22.50 23.00 

The Mexican decision was evidently taken under a combination...