In late August and early September 2008, Mexico spent approximately US$1.5 billion on derivative contracts to protect itself from the oil price remaining below US$70 barrel.  The contracts give Mexico the right to sell oil at prices ranging from US$70 to US$100 per barrel, according to a November 10, 2008 Financial Times report. 

Tomas Lajous, a UBS analyst in Mexico City who was quoted in the report said, “The hedge is very good news . . . a presumed cost of some $1.5bn is immaterial relative to risks.”  Mexico relies on oil exports for up to 40 percent of government revenue. 

On Monday, November 10, 2008, ratings agency Fitch cut the outlook on Mexico’s sovereign debt from stable to negative, citing falling oil prices, among other factors.