The Wall Street Journal: Mexico reaps $2.65 billion from oil-price hedges

MEXICO CITY — The Mexican government collected $2.65 billion from oil-price hedges taken out to protect the 2016 budget from a drop in prices, the Finance Ministry said Wednesday.

The government hedged oil for this year at $49 a barrel to cover a budget estimate of $50. The remainder is made up with money in budget-stabilization funds.

It marked the second consecutive year that Mexico has collected on its oil-hedging program.

In 2015, the government made a record $6.3 billion from the program after hedging oil at $76.40 a barrel, when the actual price averaged about $43. The average price of Mexican oil in the first 10 months of this year was $34.58 a barrel.

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