Mexico slashes Pemex support 70% in 2027 budget, raising debt default risk

Mexico's 2026 budget allocates $14B to Pemex, but the 2027 economic package plans only $4.8B, a 70% cut. This signals a policy shift away from state support for the indebted oil giant, increasing refinancing and default risk. The move may pressure Pemex's credit profile and Mexican energy output, with implications for fiscal stability and investor sentiment.