This weekend, OPEC and its partners managed to agree on a historic oil production cut to the tune of 9.7 million bpd. The initial number the cartel eyed was 10 million bpd, some 300,000 bpd higher than what it managed to agree upon. Most global oil producers were happy to cut output in the face of the greatest glut in history, but one nation wasn’t keen on participating. As Oilprice.com reported last Friday, Mexico was asked to cut oil production by 400,000 bpd, a large cut for a producer that has seen its production gradually decline over the last decade. The North American country would have suffered a double whammy of low oil prices and falling production if it wasn’t for their hedging strategy. Mexico’s ‘hacienda hedge’ is the world’s largest of its kind. The country buys put options on oil from banks, trading houses, and oil companies in […]