Mexico Oil Hedging Costs Rose 44 Percent Last Year
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Mexico, the third-largest supplier of oil to the U.S., paid $1.17 billion last year to lock in prices for 2012 exports at $85 a barrel, a 44 percent increase compared to hedging costs paid the previous year.
Mexico’s Central Bank used “the most notable and trusted” commodities brokerages as counterparts to hedge 211 million barrels of crude exports this year, according to a Finance Ministry document obtained by Bloomberg News through an access to information request. In 2010, Mexico paid $812 million to buy oil hedges for 222 million barrels for 2011.