From the Field
Mexico sets $1.23-bln oil hedge for 2019
MEXICO CITY, January 11, 2019 – Mexico has concluded a coverage plan for its oil output in 2019, placing MXN 23.49 billion (USD 1.23 billion) in put options, the Ministry of Finance and Public Credit said in a statement released Thursday.
The hedge assumes a barrel price of USD 55 for Mexico’s crude blend next year, though the volume covered was not specified.
“The action is meant to ensure oil revenues against possible reductions in the average price of the Mexican export mix established in the Federal Income Law,” the statement said. “These measures were implemented in a timely manner to ensure macroeconomic stability and protect the country’s public finances during 2019.”