The Billion Dollar Bet On An Oil Price Crash

Mexico’s oil hedgers, one of the world’s most-active sovereign oil-trading desk, has spent nearly $1 billion on options contracts to protect the government’s revenues from oil sales for 2020 against volatile price action. The news is especially notable because, as we reported last month, Russia is considering oil prices could drop to as low as $25 in 2020.  WTI prices remain in a 12-month bear market from last October’s 76.90 high as oil products demand worldwide have dropped, as well as a synchronized global slowdown continues to…