While OPEC+ Fights, Mexico Wins Over $2 Billion on Oil Hedge
- Country receiving a payout of around $2.5 billion, people said
- Lopez Obrador left output-cut deal to seek production boost
An oil platform being built in Mexico in 2018.
Photographer: Luis Antonio Rojas/BloombergThis article is for subscribers only.
Mexico will cash in its oil price insurance policy this year for the fourth time only in the last two decades, receiving a payout of about $2.5 billion from its 2020 sovereign oil hedge, people familiar with the transaction said.
In an ironic turn of events, Mexico is making a hedging profit just as the OPEC+ deal the Latin American country walked away from earlier this year is threatened by infighting over production levels.