Mexico Accelerated Global Oil Slump Through Derivative Deals

  • 'Hedging program was under-appreciated negative for prices'
  • Banks acting on behalf of Mexico had to sell futures to cover

When oil collapsed to a six-year low this month, weak demand from China and extra barrels from Iran and Saudi Arabia were marked as the prime suspects. Another country, less central to global energy markets, had a big part to play: Mexico.

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