Argentina plans to restore artifcially high domestic crude prices to jump-start its shale play, which has been hit by recent price and demand slumps. But a possible sovereign debt default will make it harder for frms to obtain foreign fnancing. The government plans to issue a decree that sets a minimum crude price, ending weeks of debate that pitted independent producers and oil-producing provinces against refners. The minimum price for light sweet grade Medanito will be $45/bl, establishing a benchmark for Argentina’s other crudes. The measure, which will remain in place until the end of this year, would face quarterly revisions as long as the Brent price does not exceed $45/bl for 10 straight days.
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