Mexico Said to Lock In $60-$65 in Annual Oil Hedge
- Mexico has recently been buying put options, traders say
- Sovereign hedge is seen as Wall Street’s largest oil deal
Photographer: Susana Gonzalez/Bloomberg
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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 predetermined 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.