Mexico hedges oil output at highest price on record.

FT: “Mexico has hedged its oil production for the coming year at the highest price on record, in a striking indication of how stubbornly high oil prices continue to allow producing governments to finance growing budgets.” “Surging output from US shale oilfields and slowing consumption in mature economies are expected to weigh on the price of crude eventually, eating into the revenue available to the world’s largest exporters. But concerns about rising production costs mean that long-term prices have remained high.
Latin America’s largest producer has taken advantage, buying options that lock in a minimum price of just over $90 per barrel, for its 2014 exports, according to two people familiar with the transactions. That is at least $4 per barrel higher than similar transactions last year.”