Two sources in the oil sector in Argentina revealed that the Argentine Ministry of economy intends to freeze domestic crude oil prices at 56 dollars per barrel until the end of October after an agreement with the industry to help reduce triple-digit inflation.
The agreement came after meetings last Thursday between Economy Minister Sergio Massa and executives from oil companies such as YPF and vizta.
The government also announced a freeze on prices at domestic fuel pumps.
The price cap, amid wider domestic inflation at 113% and continuing to rise, sets the price of a barrel of domestic crude oil to below 63 dollars as it was much earlier and well below the Brent crude benchmark at around 85 dollars. Argentina has always controlled the domestic oil price.
The sources told Reuters that the local industry, which largely produces oil and gas from the huge Argentine Vaca Muerta shale formation in southern Patagonia, had agreed to a fixed price until October 31.
