26 September 2012

COMMODITIES / OIL /MEXICO : Did Pemex Hedge Cause Oil Price Drop?


      What do you call people who are addicted to following the oil and gas markets?
      Anyway...for those interested...FT reports that a new Pemex hedge strategy may have caused a sudden 5 minute drop in the worldwide price of crude.
      Pemex locked in the price of 200 million barrels in the $80-85 bbl range for 2013 from several big banks.
      But...it included an new option that would expose it should there be a steeper price decline.
      Some claim the new hedge will cost Pemex half as much as previous programs.

    ALSO: CNN has yet another write-up about Pemex's problems with deep drilling...and its challenges to change the culture...and politics. Nothing new...but some good fotos.