Bloomberg News

Argentina Plans to Raise Export Oil to $63 a Barrel, Nacion Says

March 25, 2012

Argentina’s Energy Secretary Daniel Cameron will propose that oil prices for export be raised to $63 per barrel from the current $42, the Argentine newspaper La Nacion reported today on its website.

The proposal was ready two weeks ago, La Nacion said, without saying how it obtained the information.

A decade-long freeze on oil prices, which set the maximum producers could charge for exports at $42 per barrel, has hindered investment in Argentina.

Production dropped to 35.3 million cubic meters in 2010 from 45.4 million in 2001, according to data published by the Buenos Aires-based Argentina Oil and Gas Institute.

Argentine fuel imports more than doubled in 2011 from a year earlier to $9.4 billion, contributing to the narrowing of the country’s trade surplus to a one-year low of $280 million in December. Blocked from international credit markets since a 2001 default on $95 billion of bonds, the government depends on its trade surplus to bring dollars into the economy and build central bank reserves.

To contact the reporter on this story: Nacha Cattan in Mexico City at ncattan@bloomberg.net

To contact the editor responsible for this story: Joshua Goodman at jgoodman19@bloomberg.net


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