Aug
29
Mexico’s 2017 Oil Hedges Lock in $9.5 Billion Value: Takeaways
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Average barrel strike price is 8.3% below most recent close
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Mexico oil prices hedged at lowest level since at least 2008
Mexico said it’s locked in the equivalent of $9.5 billion of oil revenue for 2017, buying hedges to sell the nation’s crude at the lowest price since at least 2008.
The purchases were completed between May 13 and last week, the Finance Ministry said. The country’s annual trade represents the largest sovereign oil hedge in the world.
After spending most of the year declining to comment on the program out of concern it could hurt the nation’s negotiating position, Mexico finally showed (most) of its cards Monday. Here are some takeaways from the big announcement…
Mexico’s 2017 Oil Hedges Lock in $9.5 Billion Value: Takeaways
