Hedging costs paid in the first nine months of the year were 11.7 billion pesos ($897 million,) the ministry said in its quarterly public-finances report published late yesterday. The document doesn’t include details of the hedges.
Mexico’s hedging contracts are included in annual budget discussions when government officials estimate incoming oil revenue. The hedging program is usually the world’s largest of its type, Finance Ministry officials have said. Last year, Mexico paid $1.17 billion to lock in prices for 2012 exports at $85 a barrel, a 44 percent increase from the previous year.
Deputy Finance Minister Gerardo Rodriguez declined to detail how much crude volume Mexico was seeking to hedge in an Oct. 13 interview. Mexico’s 2013 budget will be discussed during the first half of December, when incoming President Enrique Pena Nieto starts his six-year term. About a third of the national budget comes from state oil company Petroleos Mexicanos, known as Pemex.
The Mexican mix of oil for export has traded at an average of $103.38 a barrel this year, 22 percent higher than the estimate of $84.90 a barrel for this year’s budget, according to data compiled by Bloomberg.
Officials at the Finance Ministry didn’t immediately respond to e-mail and voice messages seeking comment.
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