Mexico Hedged 2012 Oil at $85 a Barrel, Finance Ministry Says

Mexico, the third-largest supplier of oil to the U.S., has locked in prices for 2012 oil exports at $85 a barrel, the Finance Ministry said.

The state purchased an unspecified number of options at an unspecified price to sell oil, the ministry said in an e-mailed statement last night.

The nation normally hedges oil exports to cover a possible revenue shortfall if prices fall. About a third of Mexico’s annual budget is funded by oil revenue. The budget for this year estimates oil will sell for $84.90 a barrel.

Mexico exported about 1.34 million barrels of crude a day in 2011, according to statistics from Petroleos Mexicanos, the state-owned oil company. About 85 percent of that went to the U.S.

Canada and Saudi Arabia are the two largest suppliers to the U.S., according to the Energy Information Administration.

To contact the reporters on this story: Carlos Manuel Rodriguez in Mexico City at carlosmr@bloomberg.net Nacha Cattan in Mexico City at ncattan@bloomberg.net

To contact the editor responsible for this story: Joshua Goodman at jgoodman19@bloomberg.net

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