NEW YORK/MEXICO CITY (Reuters) – Buying and selling in crude oil choices and futures surged final week as market members ready for Mexico’s annual oil hedging program, by which the nation buys as a lot as $1 billion in contracts to guard its oil revenues.
FILE PHOTO: A chimney stands on the crude oil terminal Dos Bocas close to a mangrove space in Paraiso, Mexico, December 10, 2018. REUTERS/Alexandre Meneghini/File Picture
The worldwide oil derivatives market braces itself yearly in late spring and summer time for the hedge, the market’s largest and most secretive monetary oil deal. This 12 months, Mexico has confronted a number of challenges in executing the hedge and timing has develop into a vital issue.
Merchants and brokers who monitor cash flows informed Reuters that exercise in crude oil choices and futures means that Wall Road has began to place itself for the commerce, trying to safe safety towards additional worth volatility.
It was not clear whether or not Mexico has began executing the hedge. The Mexican Finance Ministry didn’t instantly reply to a Reuters request…