BP is second major in Mexico hedge: report
Mexico 
MEXICO CITY, November 8, 2017 – BP is participating in Mexico’s 2018 oil hedge programme, alongside super-major Shell, international media reported Tuesday.
Oil hedges have historically been carried out by Wall Street banks; however, due to increasing financial regulations on commodity trading, a space has opened up for large oil companies to increase their participation.
The USD 1.26-billion scheme is the largest of its kind in the world and will allow Mexico to bet against a potential fall in oil prices that could cause destabilisation of the federal budget.
The 2018 programme will begin this December and run through the following November. The hedge is based on an assumed average oil price of USD 46 per barrel, but Mexican authorities have not specified the volume of oil hedged.
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