World’s Biggest Oil Hedge Could Shrink If Mexico Curbs Exports
Mexico oil hedging may fall if the country’s ambitious plan to cut oil exports succeeds.
Workers prepare drilling pipe on a crude oil platform in the waters off of Veracruz, Mexico.
Photographer: Susana Gonzalez/Bloomberg
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Mexico’s plan to halt crude exports by 2023 could curb the size of its giant oil hedge and help boost longer-dated prices.
Each year, Mexico participates in one of the biggest and most secretive deals in the oil market, locking in prices of its net exports. The trade effectively makes the Mexican finance ministry one of the biggest sellers of oil contracts for 12 months ahead.