Mexico hedges against falling oil prices in double dip recession scenario

Discussion in 'Wall St. News' started by ASusilovic, Dec 9, 2009.

  1. Mexico has taken out a $1bn insurance policy against oil prices falling next year, in the latest sign that commodities producers are concerned about the threat of a double-dip recession. The world’s sixth largest oil producer said on Tuesday it had hedged all its net oil exports for 2010, by buying protection against oil prices falling below $57 a barrel. Agustin Carstens, Mexican finance minister, suggested that prices were unlikely to fall that low but added that the move was a hedge “against a really bad outcome.”