Mexico said to be working on the 'hacienda hedge'

Each year around this time (though usually a bit later), Mexico sells massive amounts of oil futures to hedge its year-ahead production. A newswire report suggests that's now underway.

The selling could explain some of the recent oil declines. The report says "is likely close to completion or already over, according to the people."

Here is some background on the trade, which is said to be the world's largest oil trade as the world's 12-largest operator locks in prices for their year, which runs Dec 1 to Nov 30.