MEXICO CITY (Reuters) - Mexico has already contracted to cover a significant part of its oil hedges for 2019 that will guarantee export prices and revenues, an incoming finance ministry official was quoted as saying by local media on Thursday.
Arturo Herrera, who is scheduled to become a deputy finance minister once incoming president Andres Manuel Lopez Obrador takes office on Dec. 1, said the hedges have been agreed by both the transition team and the outgoing administration.
Due to the government’s dependence on oil income to fund part of the federal budget, Mexico hedges its crude every year and the deals are closely watched by the market since the trades are big enough to affect prices.
“One of the first agreements between the transition team and the current team was to continue executing hedges,” Herrera was quoted as saying by newspaper El Financiero at an event in Mexico.
“A significant part of the 2019 hedges have already been contracted and will continue to be executed in the coming weeks,” he added, without offering details about the prices or the amount of barrels in question.
Reporting by Ana Isabel Martinez, Writing by Daina Beth Solomon; Editing by Marguerita Choy