The largest oil hedge in the world cost Mexico “ around $1 billion ” for 2020, Mexico’s Finance Minister Arturo Herrera said on Thursday, according to Reuters. Herrera had said the cost of the hedge would be revealed on Thursday. Herrera disclosed the rough cost of the hedge at the prompting of Mexico’s President Andres Manuel Lopez Obrador. For 2019, Mexico spent $1.23 billion , locking in a fixed price of $55 per barrel. Herrera failed to disclose the actual figure in order to keep market players in the dark as to when Mexico was hedging. The average cost of the hedging program is $1.2 billion , according to Deputy Finance Minister Gabriel Yorio. Under this hedging program, Mexico buys put options from Wall Street investment banks to sell hundreds of millions of barrels of oil. With these put options, Mexico is granted the right—but not the obligation—to sell […]