Mexico Hedges 2010 Oil Exports At US$57/bblDecember 2009 | Industry News
The Mexican government has spent US$1.17bn buying put options to sell its oil at US$57 per barrel (bbl) in 2010. The move, which was announced by the finance ministry in a December 8 statement, has been taken to insure against a possible revenue shortfall should oil prices fall next year. Following finance minister Augustin Carstens contrarian move in mid-2008, when oil prices were approaching the US$150/bbl mark, to hedge 2009 export prices at US$70/bbl, a decision that has resulted in a US$5bn windfall for Mexico, the market is viewing Mexico's latest hedging strategy with great interest.
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