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Mexico Spends $700 Million to Lock In Crude Rally for 2019

  • Government doubled oil hedge spending compared to a year ago
  • Mexican officials requested quotes from banks starting in May
Mexico Lawmakers Poised To Give Final Approval to Energy Investment Rules

Photographer: Susana Gonzalez/Bloomberg

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Mexico spent about 13.8 billion pesos ($740 million) in the first half of 2018 from its budget stabilization fund, which historically has been used exclusively to hedge forward oil prices, according to a quarterly report.

The chief economist at Mexico’s Finance Ministry, Alejandrina Salcedo, told reporters on Tuesday that "normally" the reason for money to leave that fund is the purchasing of oil hedges, but she declined to comment on specifics on the country’s oil hedging program.