Rising LNG Demand From South Asia Worsens Global Gas Crisis

Mexico’s decision to halve oil exports this year and suspend them all together in 2023 will affect its oil hedge—the biggest in the world—substantially, pushing oil prices higher. Bloomberg reports that thanks to its hedge, Mexico is one of the biggest sellers of oil contracts for any given year ahead.

However, the hedge is based on its oil exports, and when, or if, these stop, the hedge will shrink, adding volatility and upside potential to longer-dated oil contracts. The report quotes analysts and traders who explain that Mexico’s…