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Strategies & Market Trends : Dino's Bar & Grill

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To: Goose94 who wrote (30907)6/13/2017 2:54:34 PM
From: Goose94Read Replies (2) of 203566
 
Crude Oil: Mexico initiates oil hedging. Mexico reportedly sent a price request to Wall Street banks on their oil hedging program, often likened to one of the largest and most secretive oil hedging campaigns in the world. Mexico buys billions of dollars in hedges each year, a way to protect themselves from price fluctuations and offer some certainty for government finances. But the deal itself can influence the oil market because of its large size – typically 200 to 300 million barrels’ worth of hedges. In 2015, the hedging paid out $6.4 billion to Mexico after it locked in sales at higher prices than the prevailing market price. Mexico has initiated the process for this year by seeking price quotes.
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