Mexico spent $1.25 billion on world’s biggest oil hedge

Mexico spent about $1.25 billion to lock in prices of oil exports for next year, or more than 21 percent what it paid to hedge crude a year ago, according to Finance Ministry data.

The cost for buying put options on the market as of the end of the third quarter came to more than the $1.03 billion spent last year to protect against a drop in oil revenue, according to data released in the quarterly budget balance. In recent years, Mexico has spent an average $1 billion buying the hedges.

Source: Bloomberg