WARNI​NG USA! MEXIC​O CUTTI​NG OIL EXPOR​T!​

[Mrs. Sharon B. Hodge]

WARNI​NG USA! MEXIC​O CUTTI​NG OIL EXPOR​T!​

WHY YOU SHOULD BE WORRIED? USA IS BANKRUPT, OPEC NATIONS ARE DUMPING THE WORTHLESS US PETRO DOLLAR, MEXICO IS #3 EXPORTER OF OIL TO USA (VENEZUELA #4 CANADA #2 SAUDI #1) SO YEAH YOU SHOULD BE WORRIED AS HELL!! MEXICO IS RUNNING OUT OF GAS SUPPLY WARNED BY MANY INSIDERS (INCLUDING GEORGE GREEN)

A VERY HARSH WINTER IS COMING US BUSINESSES ARE GOING BANKRUPT WHATS NEXT! BE PREPARED NOW!!





The inevitable collapse of the dollar

**********************************************
Mexico hedges almost all of its oil exports
**********************************************

By Javier Blas in London and Adam Thomson in Mexico City

Financial Times
Published: November 10, 2008

http://www. ft. com/cms/s/0/5793cd1e-af68-11dd-a4bf-000077b07658. html

Mexico is taking steps to protect itself from the oil price remaining below $70 a barrel in the clearest sign yet of the concerns of producer countries at the impact of the global economic slowdown on their revenues

The world’s sixth biggest oil producer hedged almost all of next year’s oil exports at prices ranging from $70 to $100 at a cost of about $1.
5bn (£961m) through derivatives contracts, according to bankers familiar with the deal

The cover is far higher than the country – which relies on oil for up to 40 per cent of government revenue – usually seeks.
Last year, Mexico hedged 20-30 per cent of its exports

Mexico’s finance ministry declined to comment on Monday but said in its latest quarterly report that its oil income stabilisation fund spent about $1.
5bn on “financial investments, as part of the measures taken for risk management”

Oil prices hit an all-time high of $147.27 a barrel in July but have since fallen to less than $65 as the global economy cools. In late afternoon trading in London on Monday, oil fell 18 cents to $60.
86 a barrel

Tomas Lajous, a strategist at UBS in Mexico City, said the trades appeared to have occurred in late August and early September. “The hedge is very good news . . . a presumed cost of some $1.
5bn is immaterial relative to risks,” he said

Signs that a big producer was hedging emerged over the summer as traders in New York noted a significant surge in options for December 2009. Mexico’s programme could have added some downward pressure to spot oil prices as banks involved in the deal – Barclays Capital and Goldman Sachs – offloaded some of their risk, selling futures, traders said.
Neither bank would comment

Without the hedge, the recent price falls would have been a serious concern for Mexico.
The government has already revised its budget, lowering its oil price target from $80 to $70

Last month, Agustín Carstens, Mexico’s finance minister, told the Financial Times in an interview that he had been stunned by the fall in oil prices.
“What we have seen is amazing,” he said

However, he pointed out that the government’s stabilisation fund had a $10bn cushion.
“We should be in good shape”

Fitch, the ratings agency, cut the outlook on Monday on Mexico’s sovereign debt from stable to negative.
Among the reasons, it cited were lower oil prices



Annual average exports, thousand barrels per day, of crude oil from Mexico to the US


*********************************
Mexico To Cut Crude Oil Exports to US
*********************************


Green Car Congress
4 May 2008

http://www. greencarcongress. com/2008/05/mexico-to-cut-c. html

El Universal. Mexico will reduce its crude oil exports to the US by an average of 184,000 barrels per day throughout 2008, according to PMI Comercio Internacional, the commercial arm of PEMEX in the international energy market.
The reduction could continue to 2010, according to PMI

In 2007, Mexico exported an average 1.533 million barrels per day to the US, according to the US Energy Information Administration (EIA). The average for the first four months of 2008 is 1.170 mb/d, according to PMI—78% of Mexico’s crude oil exports. The average for the first four months of 2007 was 1.599 mb/d, according to the EIA. Mexico is consistently one of the top three exporters of crude oil to the US, along with Canada and Saudi Arabia.


The EIA forecast a 13.2% shortfall of imports from Mexico during the current fiscal year, driven mainly by declining production at Cantarell. (Earlier post).