LatinNews Regional Monitor: Brazil & Southern Cone - 20 May 2020

* The Argentine government has issued a decree setting the price of a locally produced barrel of crude oil at US$45, higher than US$35 per barrel that the main international crude benchmark, Brent, was trading at yesterday. The decree is an attempt to sustain Argentina’s domestic oil sector, protect employment, and promote oil self-sufficiency. The price will be fixed until 31 December, in response to the abrupt drop in the international value of crude, due to the coronavirus (Covid-19) pandemic. However, the local reference rate will be voided if the price of Brent crude exceeds US$45 for 10 straight days. The government has also promised not to raise the liquid fuel tax (ICL) until 1 October. Among other things, the decree also stipulates that oil firms that operate in the country must maintain production and employment at 2019 levels.

End of preview - This article contains approximately 141 words.

Subscribers: Log in now to read the full article

Not a Subscriber?

Choose from one of the following options

• Subscribe
• Sign up for a one-time, 14-day trial