Argentina has set oil prices far below international level

Argentina has set drillers’ oil prices at $56, much below international levels, to curb inflation after currency devaluation.

This decision means shale companies would earn 11% less than the second-quarter $63 local light crude price and far from Brent, which is around $84. Producers of heavier Escalante crude from other places will receive a $5 discount on present prices.

Economy Minister Sergio Massa’s spokesman cited the minister’s announcement freezing gasoline and diesel prices through October.

This decision may hurt Argentina’s Vaca Muerta, which aims to boost exports and bring in funds.

Massa promised drillers export tax deferral, faster hard dollar access, and possibly import tax relief.


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