Argentina restores crude price controls

Argentina's oil producers and refiners struck a deal on setting a crude reference price as part of a broader agreement with the government to moderate fuel price increases at the pump.

The agreement sets a reference price for Brent crude of $66/bl in May, $67/bl in June and $68/bl in July.

The deal means that crude producers in Argentina have to once again deal with price controls on production less than a year after the government said it would free wellhead and pump prices to undo more than a decade of government intervention.

The agreement supplements a separate agreement sealed earlier this week in which the government abandoned a previous pact to freeze retail fuel prices in May and June.

The retail price of gasoline increased by up to 5pc while diesel increased as much as 4.5pc across the country on 2 June, and both will rise by an additional 3pc in July.

The government of President Mauricio Macri is trying to moderate increases at the pump amid persistent double-digit inflation and a sharp depreciation of the peso.

At the same time, the administration is implementing market-oriented measures in a bid to boost investment in the energy sector.

The government signed a $50bn credit facility with the IMF this week.