06/11  Closing Prices / revised 06/12/2024 07:53 GMT 06/11 OPEC Basket  $82.36   +$1.43 cents 06/11 Mexico Basket (MME) $72.63  +$0.43  cents  | 04/30 Venezuela Basket (Merey)   $74.91   +$3.93 cents | 06/11 NYMEX WTI Texas Intermediate July CLN24 $77.90  +$0.16 cents  | 06/11 ICE Brent August  BRNQ24    $81.92  +$0.29 cents  | 06/11 NYMEX Gasoline June RBN24  $2.40  +0.1%  |  06/11 NYMEX  Heating Oil July  RBN 24    $2.42  +0.3% | 06/11 Natural Gas July NGN24  $3.12   +7.7%  | 06/07 Active U.S. Rig Count (Oil & Gas)   594  -6  | 06/12 USD/MXN Mexican Peso   18.6503  (data live)  | 06/12 EUR/USD     1.0745 (data live)  | 06/12 US/Bs. (Bolivar)   $36.43850000 ( data BCV)

Milei’s Plan to Free Argentina’s Oil Market Slows in Congress – Bloomberg

    Modified legislation would allow government to block exports
    Lawmakers scheduled to vote on sweeping reforms bill soon
Modified legislation would allow government to block exports. Lawmakers scheduled to vote on sweeping reforms bill soon.

Jonathan Gilbert and Lucia Kassai, Bloomberg News

EnergiesNet.com 01 29 2024

Javier Milei’s plans to free Argentina’s oil markets are getting pared back as the new president negotiates sweeping reforms to deregulate the country’s economy with an opposition-controlled congress.

At issue is the Argentine government’s ability to stop drillers from exporting cargoes of crude if it’s concerned about shortages at domestic refineries. This right of first refusal has long existed in Argentina, and international oil companies including Chevron Corp. and Shell Plc had lobbied against it. But the latest version of Milei’s signature deregulation legislation backtracks on a move to strip away the practice and still allows it.

In Big Oil’s favor, the tweaked bill — which lawmakers are scheduled to vote on soon — maintains language that would prohibit the government from reducing local crude prices to keep fuel cheap. That measure may be enough to keep domestic refineries well-supplied, said Nicolas Gadano, an Argentine consultant and professor who specializes in economics and energy.

“The government has backpedaled a bit on the libertarian spirit” of the proposed oil rules, Gadano said. “But the problems with right to first refusal only arise when you create a gap between domestic and export prices.”

The Energy Secretariat didn’t immediately reply to a request for comment.

Still, the right to first refusal may hobble producers’ plans to ramp up drilling in Argentina’s heralded Vaca Muerta shale patch. That’s because the possibility that an export cargo will get blocked is a hurdle to negotiating contracts with overseas buyers.

Milei has let Argentina’s refiners hike gasoline prices, which allows them to pay more for crude and lessens producers’ incentive to sell oil abroad. That is already helping keep a balance between exports and domestic sales, according to a trader familiar with the matter.

Milei has been making multiple concessions to push through the legislation, including suspending a move to privatize YPF SA, Argentina’s biggest oil and gas driller and fuel retailer, which is spearheading development of the Vaca Muerta.

Exports of light Medanito crude produced in Vaca Muerta surged by 39% last year to more than 100,000 barrels, accounting for 72% of all Argentine oil shipments.

bloomberg.com 01 26 2024

Share this news

Support EnergiesNet.com

By Elio Ohep · Launched in 1999 under Petroleumworld.com

Information & News on Latin America’s Energy, Oil, Gas, Renewables, Climate, Technology, Politics and Social issues

Contact : editor@petroleuworld.com

CopyRight©1999-2021, EnergiesNet.com™  / Elio Ohep – All rights reserved

This site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a ‘fair use’ of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use’, you must obtain permission fromPetroleumworld or the copyright owner of the material.

Scroll to Top