SAO PAULO, March 22 (Reuters) - Brazil’s state-owned oil company Petroleo Brasileiro SA said on Friday it was spending $320 million on put options hedging part of its Brent output at $60 per barrel, in a move to lock in some of this year’s price gains. “The strategy is to hedge the export operations expected for the year, that way partially protecting the company’s operational cash flow,” the company said in a securities filing. The options expire by the end of the year.
Brent crude futures hovered around $67 per barrel in international markets on Friday.
Oil futures for 2019 and 2020 have soared some 20 percent to their highest levels this year.
The filing confirmed a Reuters report this week that said Petrobras, as the company is known, was hedging oil at $60. (Reporting by Marcelo Rochabrun; editing by Jonathan Oatis)