Shell becomes first oil company to join Mexico's hedging program: Bloomberg

Showa Shell Sekiyu's logo is seen at its gas station in Tokyo, Japan, August 10, 2016.   REUTERS/Kim Kyung-Hoon
Showa Shell Sekiyu's logo is seen at its gas station in Tokyo, Japan, August 10, 2016. REUTERS/Kim Kyung-Hoon

Royal Dutch Shell Plc participated in Mexico's oil hedging program for 2017, the first time an oil company has taken part in the world's large commodities hedging program, according to Bloomberg, citing four people with knowledge of the matter. Shell's trading unit was one of the seven counterparties to the Mexican government, the report said, adding that their involvement is the first known participation since Mexico started to lock in prices regularly 15 years ago. The move highlights a retreat by banks away from commodity trading because of increased regulation following the financial crisis. Earlier this week, Mexico's Finance Ministry said it had wrapped up its derivatives trade program, guaranteeing an average price of $42 per barrel for crude oil exports in 2017. Due to the government's dependence on oil income, Mexico hedges its crude every year and the deals are closely watched by the market since the trades are big enough to affect prices. Reuters has not independently verified the report.
(Reporting by Catherine Ngai; Editing by Alan Crosby)
This article was first seen on Reuters
Category and Tags
Add a comment
More stories by
Tesla's big battery races to keep South Australia's lights on

FILE PHOTO - A Tesla charging station is seen in Salt Lake City, Utah, U.S. Sept

What is direct wages?

Direct wage is the wage which can be easily and conveniently identified. It refe

WHO IS THE MOST STUPID HERE? EACH OF YOUR CHOICES CAN REVEAL A PART OF YOUR PERSONALITY

Each of your choices can reveal a part of your personality.Look at the picture a

BAF jets, navy ships reportedly deployed near Myanmar border

Two MiG-29 aircraft of the Bangladesh Air Force bank during a maneuver Banglades

Follow Business Habit on Facebook, Twitter