Mexico produces about one point seven million barrels of oil a day. Every year it signs off on a contract with some large investment banks. The deal is structured to give mexico the right to sell its oil in the future at a predetermined price. In market parlance, it's a put option. So if the price of oil tumbles below a certain level, then the contract kicks in and the banks have to pay out the difference.
In today’s episode for 11th January 2022, we explain how Mexico may come to affect the “future” price of oil