Mexico hedged oil exports for 2016 at an average price of $49 a barrel, down 36% from the hedge for this year as oil prices tumble and domestic production declines. The hedging contracts covered 212 million barrels of crude oil, the Finance Ministry said late Wednesday. It cost the government about $1.1 billion, the highest sum since 2010. The 2016 oil hedge is well below the $76.40 a barrel at which the government hedged for this year. The Mexican crude-oil benchmark is trading near $38, some 60% lower than a year ago. Mexico, the world’s ninth-largest oil producer, uses the hedge to protect its public finances from unexpected oil shocks. The government buys options to guarantee a minimum price for its crude. But the oil hedge will provide only limited relief for a government accustomed in recent years to oil prices near $100 a barrel. About 18% of […]