Mexico has taken out a $1bn insurance policy against oil prices falling next year, a clear signal that commodities producers remain wary about the threat of a double-dip recession.

“We want this as an insurance policy,” said Agustín Carstens, Mexico’s finance minister. “If we don’t collect any resources from this transaction, it’s OK with us.” That would mean the oil price had remained above $57 a barrel, he added.

Mr Carstens suggested he was not expecting prices to fall that low, but added: “More than anything, it’s a hedge against a really bad outcome.”

Source/Full Story: FT.com

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