A marked rise in U.S. oil options volatility for contracts expiring in 2017 has sparked speculation among traders that the market is preparing for Mexico's annual hedging program, worth billions of dollars and one of the largest by a nation across commodities markets.
The state-run producer typically buys put options for a portion of its annual output that give it the right to sell crude at a certain price - helping to protect revenue for national oil company Pemex as well as the country's oil-reliant economy - as the nearly two-year rout in crude prices punishes . . .
