Traders Say Mexico In Process of Placing Annual Oil Hedge (BBG)

From Bloomberg:

• Mexico is in the process of locking in its income from next year's oil production, people familiar with the matter said, in what's one of the most closely watched deals among the world's energy traders.
• The country has been purchasing put options, which grant the right to sell at a pre-determined price, at a price range of about $60 to $65 a barrel, the people said, asking not to be identified because the trade is private.
• The oil hedge, a multibillion-dollar deal which typically covers between 200 million and 300 million barrels, is so large it often roils the market.
• Mexico's Finance Ministry declined to comment.