Mexico Spends Record $1.25 Billion On 2018 Oil Hedge

Mexico spent $1.25 billion on an oil hedge to lock in oil
prices for 2018, according to new data released by the nation’s
finance ministry. On average, Mexico has spent $1 billion in
previous years to maintain its oil hedge, which prevents the
government from losing billions in oil revenues if barrel prices
take a dive. After the past three years of crisis-level oil prices,
the technique has inspired other countries, notably Iraq, to
consider creating a substantial hedge of their own, which would
dramatically affect budget writing on the…

Mexico spent $1.25 billion on an oil hedge to lock in oil
prices for 2018, according to new data released by the nation’s
finance ministry. On average, Mexico has spent $1 billion in
previous years to maintain its oil hedge, which prevents the
government from losing billions in oil revenues if barrel prices
take a dive. After the past three years of crisis-level oil prices,
the technique has inspired other countries, notably Iraq, to
consider creating a substantial hedge of their own, which would
dramatically affect budget writing on the…