Mexico Finance Ministry Completes Oil Hedges at $55 a Barrel

(Bloomberg) -- The Mexican government paid 23.5 billion pesos, or about $1.23 billion, for the hedges as part of its strategy to ensure oil revenue against falls in prices, the Finance Ministry said in a statement.

Mexico hedged at $55 a barrel, equivalent to the price approved by lawmakers for the 2019 budget, protecting the country’s revenue if oil falls below that level, the statement says.

Last year the government took steps to conceal further details about the annual oil hedges, telling its national audit body releasing more information “could increase the cost of the oil hedge.”

The hedge is considered the largest oil deal on Wall Street.

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