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Mexico Will Hedge Oil Export Prices for Next Year, Rubio Says

  • All options on table to bolster peso: deputy finance minister
  • Nation to reach fiscal goal with or without FX surplus: Rubio
Gas is flared from towers on an oil drilling rig operated by Petroleos Mexicans (Pemex) in the Ku-Maloob-Zaap oilfield at Campeche Bay off the coast of Ciudad del Carmen, Mexico, on Friday, Aug. 1, 2014. Mexico's Senate is scheduled to hold a vote tonight on the final measure to implement the constitutional overhaul approved in December ending Pemex's exclusive right to crude oil production, now in its 76th year.
Photographer: Susana Gonzalez/Bloomberg

Mexico plans “without a doubt" to protect the country against low crude prices for next year, Deputy Finance Minister Vanessa Rubio said in an interview, in a continuation of what’s become the world’s largest commodities hedging program.

The amount of Mexico’s export basket to be protected through market operations, versus through its stabilization fund, has yet to be determined, Rubio said in an interview on the sidelines of a banking conference in Acapulco. All options are open to reduce volatility of the peso, which is undervalued when economic fundamentals are taken into account, Rubio added.