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Mexico Begins Annual Oil Hedge Program for 2023

OIL

Mexico has begun their annual oil hedging program to protect against downside market moves according to Bloomberg.

  • The largest sovereign oil hedge is looking to insure oil exports revenues against a fall in the market price of crude. Bloomberg report the hedging is for the first half 2023 with protection against a fall below 75$/bbl.
  • The hedge typically covers downside protection for between 200m and 300mbbls. The hedge level was estimated around 60-65$/bbl in 2022, 49$/bbl in 2020 and 55$/bbl in 2019.

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