Fox torn between desire for higher oil prices and worries about US relations.(Vicente Fox, President of Mexico)(Brief Article)

MEXICO CITY-- President Vicente Fox is torn between his government's need for higher oil prices in order to avoid unpopular budget cuts and a strong desire for good relations with the incoming US administration. Fox's $141 billion budget is premised on an average price of $18 per barrel for Mexican crude exports.

However, in recent weeks, prices have dipped below that level, causing concern that the government may have to cut expenditures in order to keep its budget deficit at low levels. One top official says falling oil prices could cost the government $660 million in lost ...

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