Kate Mackenzie The world’s most successful, but worst paid, oil manager?

This apparently, is a quip in oil trading circles about Mexico’s finance minister, Agustín Carstens, on news that Mexico is set to reap $8bn from setting up hedges against falling oil prices last summer.  Carstens (right) hedged Mexico’s entire 2009 oil exports with Goldman Sachs and Barclays capital at a cost of $1.5bn, correctly predicting that the financial crisis would see oil prices plummet from their high of $147  in July last year.

It will be some comfort, especially Mexico’s own oil output has fallen faster than expected this year, prompting the replacement of Pemex chief Jesus Reyes Heroles.

No-one, however, is anticipating a repeat performance this year, with analyst Ed Morse of LCM Commodities pointing out it was “idiosyncratic to last year’s oil market”, when the high prices of summer allowed for relatively cheap hedging against a price drop.

Related links:

Adios, Cantarell (FT Energy Source, 20/02/09)
Clarion call from Cantarell (Gregor.us, 23/08/09)