Mexico will receive $6.4 billion of insurance against falls in oil prices

MEXICO city, 25 Nov. Mexico will receive in early December of this year of about 6.4 billion dollars in insurance, which it acquired last year from a pool of international banks to absorb a possible drop in oil prices, said the Minister of Finance Latin American countries Luis Videgaray.

Under the terms of the contract, the price of oil was fixed at 76.4 $ / bbl for 2015. The real price of a barrel of Mexican crude oil was almost $ 30 less. For insurance paid Mexico 773 million dollars.

“We expected to get worth about 6.4 billion dollars, or about 104 billion pesos, which is already included in the budget”, — said Videgaray. According to him, Mexico is planning next year to buy such insurance, but the price of a barrel already laid for her in the amount of 49 dollars per barrel.

Previously the Mexican authorities have decided to reduce budget expenditures in 2015, in total 124,3 billion pesos amid falling oil prices. According to Videgaray, this amount was approximately 0.7% of the GDP of the country. Were also revised downward the plans of daily oil production in 2015 from 2.4 million barrels to 2.29 million. Thus, the production cuts of approximately 5%.

Mexico is one of the world’s major oil producers with production at around 2.3 million barrels per day. The trend of recent years has resulted in a reduction of production, although 10 years ago the oil company Pemex has reached a record high of 3.38 million barrels of production per day. The authorities are now trying to reverse the situation and ensure production growth.