In February and March, Brazil’s state-controlled oil firm Petrobras hedged 128 million barrels of its expected 2018 production —equal to around 15 percent of total production—at an average price of $65 per barrel, to protect part of its operating cash flow generation this year. The hedge puts a floor under around 350,000 bpd of Petrobras’s oil production this year, or just above 15 percent of its oil production of around 2.2 million bpd that the company has reported for the past two years. Petrobras has purchased put options referenced to the average Brent price in February and March through the end of 2018, at an average cost of $3.48 per barrel and average exercise price of around $65/barrel, the Brazilian company said in a statement. The options mature at the end of this year. The cost of the hedge, 128 million barrels at $3.48 per barrel, is around US$445 […]