Mexico said to be working on the 'hacienda hedge'

<p>Each year around this time (though <a href="https://www.forexlive.com/news/!/the-hacienda-hedge-is-said-to-be-underway-20180511" target="_blank" rel="follow">usually </a>a bit later), Mexico sells massive amounts of oil futures to hedge its year-ahead production. A newswire report suggests that's now underway.</p><p>The selling could explain some of the recent oil declines. The report says "is likely close to completion or already over, according to the people."</p><p>Here is <a href="https://www.bloomberg.com/news/features/2017-04-04/uncovering-the-secret-history-of-wall-street-s-largest-oil-trade" target="_blank" rel="nofollow">some background</a> on the trade, which is said to be the world's largest oil trade as the world's 12-largest operator locks in prices for their year, which runs Dec 1 to Nov 30.</p>

This article was written by Adam Button at www.forexlive.com.