Mexico Spends Over $1 Billion To Hedge Against Looming Oil Collapse

gulf mexico

Mexico has spent $1.172 billion to buy oil hedges for 2010, protecting itself in case prices collapse.

Bloomberg: Mexico purchased put options that give it the option, not the obligation, to sell its oil for $57 a barrel next year, the Finance Ministry said in an e-mail statement today.

Mexico lost out on 300 billion pesos ($23.3 billion) of oil revenue this year as production at state-owned Petroleos Mexicanos fell at the fastest rate since 1942 and crude prices fell about half since a record $147.27 a barrel in July 2008.

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