Some Oil Producers Have Secret Weapon in Hedging


A handful of companies and national producers around the world bought insurance’in the form of hedging strategies’for a collapse in oil prices.

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Not all oil companies are equal when it comes to the pain of sharply lower crude prices. Some oil producers have secret weapon in News Some Oil Producers Have Secret Weapon in HedgingWall Street Journal52 minutes agoA handful of companies and national producers around the world bought insurance—in the form of hedging strategies—for a collapse ... Some companies and national producers around the world bought insurance’in the form of hedging strategies’for just such a collapse.

This hedging tool kit allows some companies such as Hess Corp. and Cairn Energy PLC and countries including Mexico to continue selling their crude at considerably higher prices when benchmark U.S. and global oil prices plummet.

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Publisher: WSJ
Date: 2020-04-24T09:30:00.000Z
Author: Benoit Faucon
Twitter: @WSJ
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Mexico’s secret weapon in the oil price war


Publisher: www.worldoil.com
Date: 1D13E169D1013DD25BFCEFC16212E6C5
Twitter: @WorldOil
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The secret weapon giving Mexico power in the oil-price war

It has been buying so-called Asian style put options from a small group of investment banks and oil companies

LONDON ‘ As Mexico and Saudi Arabia fight over a deal to bring the oil-price war to an end, Mexico has a powerful defence: A massive Wall Street hedge shielding it from low prices.

With talks well into their third day, the Mexican sovereign oil hedge, which insures the Latin American country against low prices and is considered a state secret, is a factor that may make the country less inclined to accept the OPEC+ agreement.

For the last two decades, Mexico has bought so-called Asian style put options from a small group of investment banks and oil companies, in what’s considered Wall Street’s largest ‘ and most closely guarded ‘ annual oil deal.

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Publisher: The Malaysian Reserve
Date: 2020-04-13T05:13:26+00:00
Twitter: @TMReserve
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The Secret Weapon That Gives Mexico Power in the Oil Price War

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Publisher: www.wallstreetreporter.com
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How a $141 billion South Korean insurer became a penny stock

The latest slump in markets, which has seen the South Korean won tumble – casting a cloud on Hanwha’s tactic of investing heavily overseas – has layered pain on top of a pre-existing condition. Mexico’s secret weapon in the oil price warRange2 weeks agoWith talks well into their third day, the Mexican sovereign oil hedge, which insures the Latin American country against low prices ... Hanwha, along with its peers, sold a welter of long-term, fixed-rate products to retail investors two decades ago that are now proving costly to maintain.

Those legacy liabilities from the late 1990s to 2001, offering average annual returns of 6 per cent, represent about 40 per cent of Korean insurers’ products, according to Financial Supervisory Service data obtained by opposition lawmaker Kim Sung-won. That’s putting a major squeeze on Hanwha amid the world’s worst market rout since the global financial crisis.


Publisher: The Straits Times
Date: 2020-03-30T15:01:08+08:00
Twitter: @STCOM
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