Argentina Could Simply Suspend Oil Exports to Solve Shortage Problem

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Argentina could simply ban oil manufacturers from exporting crude out of the country unless they have a good enough local source amid a persistent fuel shortage.

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“If the fuel source is not resolved by midnight on Tuesday, corporations will not be able to send export ships from Wednesday,” Massa told reporters, as quoted by Bloomberg. “The oil of the Argentines belongs first to the Argentines. »

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At the same time, Reuters quoted government officials as saying the shortage would soon disappear and that 10 shipments of imported fuel were expected to arrive soon. The distribution of the fuel will take a few days, the country’s energy minister told local media. however, it solves the challenge of scarcity.

The fuel shortage evolved earlier this month, with the media, speaking to the Buenos Aires Times, attributing it to a shortage of dollars that prevented the government from getting enough imported fuel, leading to long lines at gas stations and the closure of some because they were out of stock. no fuel.

However, Energy Minister Flavia Royon attributed the shortages to increased tourism activity last week, as well as rumours of an increase in the cost of fuel following the upcoming elections, which will take place on 19 November.

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Energy corporations active in Argentina demonstrated this by saying that the shortage is the result of “excessive demand caused by waiting for a shortage. “

The corporations, along with state-owned YPF, Raizen, Trafigura and Axion Energy, said in a statement that fuel materials would normalize in the coming days.

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By Charles Kennedy for Oilprice. com

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