Mexico oil hedge set for 2018
Mexico 
MEXICO CITY, October 17, 2017 – Mexico has concluded a coverage plan for its oil in 2018, international media reported Monday.
From the beginning of December until the end of November next year, the hedge bets on Mexican oil at a price of USD 46 per barrel. The price, estimated by the Secretariat of Finance and Public Credit for the 2018 national budget, is USD 4 per barrel higher than that of the 2017 hedge.
“We are sure that the coverage perfectly covers the price of a barrel that we included in the 2018 budget,” Deputy Treasury Secretary Vanessa Rubio was quoted by Bloomberg as saying.
Rubio also said that the Mexican Petroleum Fund for Stabilisation and Development would contribute to price stabilisation.
The country has been covering its crude production annually since 2000, usually through put options bought from investment banks. Last December, Mexico made USD 2.65 billion from the 2016 hedge and was paid USD 6.4 billion in 2015 following the mid-2014 oil price downturn.
Read our latest insights on:
Latest news and features
