The Egyptian government is taking a hedging mechanism against oil and food commodities price fluctuations in fiscal year (FY) 2018/19, Al Borsa Newspaper reported, citing the financial statement of the public budget.

The government started the hedging program to secure the budget against the rising global oil prices and to prevent negative impacts on the subsidies bill and the deficit.

The statement noted that global estimates see oil prices stabilizing between $65 and $70 per barrel during 2019, according to the traded futures and the forecasts of the International Monetary Fund (IMF).

Oil prices increased by 30% during Q1 2019 to reach $68 per barrel as the Organization of the Petroleum Exporting Countries (OPEC) and other major producers, led by Russia, committed to production cuts to avoid a supply glut.