MEXICO CITY, Dec 7 (Reuters) - Mexico has received $2.65 billion from its oil hedging program, the country’s Finance Ministry said on Wednesday, in what is considered to be the world’s biggest sovereign derivatives trade.
Mexico, an oil-producing country, hedges its crude every year and deals are closely watched by the market since the trades are big enough to affect prices. The program is a longstanding part of the country’s strategy for safeguarding oil revenues from market volatility.
The ministry said in a statement it covered 212 million barrels of crude at an average price of $49 per barrel.
Mexico has increased the amount of crude exports it will hedge next year by 18 percent compared to this year.
For 2017, the ministry guaranteed an average price of $42 per barrel for crude oil exports. (Reporting by Natalie Schachar; Editing by Bernard Orr)