MEXICO CITY, Nov 5 (Reuters) - Mexico’s finance minister said on Wednesday that the country could use derivatives to shore up this year’s budget if the price for Mexican crude falls much below $70 per barrel.
“In order that we would have to execute the hedge for this year, the oil price would need to fall far below 70 dollars,” Finance Minister Luis Videgaray said at an event in Mexico City.
Mexico’s crude mix MEX-OSP traded around $74.21 on Wednesday. The federal government relies on oil income to fund about one-third of its budget. (Reporting by Luis Rojas)