Why Mexico’s Oil Hedging Strategy Could Be Risky Business
Ryan Dusek, Director in Opportune's Commodity Risk Advisory Group, was quoted in Reuters, offering commentary about why Mexico's oil hedging strategy could mean risky business for Wall Street and other industry stakeholders involved going forward in 2020.
"I would expect a divergence of prices over the long term. This pressure on Maya could move prices down faster than its hedge. This would cause a loss on the physical sale of Maya and minimal-to-possibly no benefit of the hedge."