It is rumored that Mexico is conducting annual oil hedging at the price of $60 to $65 a barrel.

Mexico is locking in revenue from next year's oil production, one of the most closely watched deals for global energy traders, according to people familiar with the matter.

Mexico has been buying put options, which give investors the right to sell at a predetermined price in a range of about $60 to $65 a barrel, according to people familiar with the matter.

Oil hedging is a multibillion-dollar trade that usually covers 200m to 300m barrels of crude oil and is so large that it often disrupts markets.

Mexico's finance ministry declined to comment.

Over the past two years, the Mexican government has taken measures to keep the details of hedging trades secret, fearing that any information surrounding the deal could lead traders to trade first, thereby increasing costs.

Mexico has spent $15.1 billion on put options since 2001, based on estimates from government data, and has made a profit of $16.5 billion because it has made four profits so far.

In the past, Mexico has bought put options from the internal trading desks of large oil companies such as RDS.A.US, as well as Wall Street giants including Goldman Sachs. It is not clear who will correspond to the 2022 Mexican agreement.