December 22, 2012 / 4:45 AM / 8 years ago

Mexico sets oil hedge at $86 per barrel for 2013

MEXICO CITY, Dec 21 (Reuters) - Mexican oil export revenue will be hedged at an average price of $86 per barrel in 2013, the country’s Finance Ministry announced in a statement late Friday.

The statement did not provide other details of the hedging program, known formally as the Oil Revenues Stabilization Fund, or FEIP.

Mexican Finance Minister Luis Videgaray said on Dec. 10 that the country has hedged 2013 crude exports at a price around $84.90 per barrel, the same average price included in the country’s budget for next year.

Mexico, regarded as the biggest producer nation in the world that uses derivatives markets to protect against oil price swings, relies on oil revenues to fund about a third of its federal budget.

Mexico’s is the world’s seventh largest oil producer.

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