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MercoPress, en Español

Montevideo, January 7th 2025 - 05:12 UTC

Tag: sovereign hedge

  • Monday, April 13th 2020 - 10:15 UTC

    Mexico has its oil protected by a sovereign hedge ensuring against low prices

    For the last two decades, Mexico has bought so-called Asian style put options from a small group of investment banks and oil companies

    While Mexico and Saudi Arabia fought over a deal to bring the oil-price war to an end, Mexico has a powerful defense: a massive Wall Street hedge shielding it from low prices. The Mexican sovereign oil hedge, which ensures the country against low prices and is considered a state secret, is a factor that may make the country less inclined to accept the OPEC+ agreement.