Pemex to Reap $8B from Hedging Oil Production

According to the Financial Times, Mexico is estimated to earn $8 billion from contracts bought last summer as insurance against declining oil prices in 2009.

Anticipating a fall in prices due to the global financial crisis, Mexico's finance minister, Agustin Carstens, hedged all of the country's oil exports for 2009 at a cost of $1.5 billion, the report noted.

Oil traders revealed that Mexico has already begun hedging a parcel of its oil revenues for 2010 and was securing a price floor near $50-$55, the Financial Times said.