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Argentina Fixes Oil at $56 a Barrel: BBG

ARGENTINA
  • Bloomberg report that Argentina has fixed the price of oil received by drillers at $56, far below international levels, as it scrambles to stop inflation getting further out of control after this week’s currency devaluation, according to two people familiar with the matter.
  • Argentine oil prices were already decoupled from global markets, but Thursday night’s decision means shale companies will receive 11% less than the $63 at which local light crude was trading in the second quarter. The new price is also a big deviation from Brent, which is hovering at $83.
  • A spokesman for Economy Minister Sergio Massa declined to comment on the new barrel price, pointing only to the minister’s public remarks last night freezing gasoline and diesel prices through October.

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