It Looks Like Pemex’s 2022 Oil Hedging Has Started
- Recent moves are consistent with company’s normal playbook
- Hedging gives world’s most indebted oil company more certainty
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More than 23 million barrels of certain crude options traded since Dec. 10, suggesting a major player is hedging against lower oil prices to protect 2022 revenues.
According to Bloomberg’s analysis of trading data, a significant volume of average-price option put spreads traded during that period. These trades involve simultaneously buying a higher-priced put option -- giving the holder the right to sell at a pre-determined level -- and selling a lower price put, acting as insurance in case prices collapse.