Experts question shift in Mexico oil hedging strategy

Use of put spreads in oil hedging programme leaves Mexico dangerously exposed to low oil prices if global economy sinks


Following a report that Mexico has decided to use put spreads instead of put options for its sovereign hedging programme, risk management experts warn the Latin American country has left itself dangerously exposed to downside risk.

The worries follow a Financial Times report claiming Mexico had used a bear put spread with a high strike price of $80 to $85 per barrel of West Texas Intermediate (WTI) crude oil and a low strike price of about $60/bbl to hedge its crude exports for 2013.

By buying

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options


Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here