Due to the bad situation, Total does not want to invest in Argentina

October 26, 2018 - By Joseph Taylor

Due to the devaluation, the bad economic context and while new gas prices are being discussed, the Total oil company will not make new investments for now in Argentina, said CFO Patrick Pouyanne.

“The company is evaluating the timing of its Fenix ​​project in Argentina, given the ongoing discussion about gas prices and the devaluation of the country’s currency,” Bloomberg said.

A month ago, Pouyanne had assured that the oil could rise to US $ 100 per barrel because several factors, like new sanctions to Iran and interruptions of the production in Venezuela, that are reducing the supply in the market and promoting the prices towards the three digits for the first time since 2014.

“I’m not sure it’s good news” for the global economy, Pouyanne said. “Even for the oil industry, because when prices rise to that level, one opens the door to competition” and demand will fall, “he told Bloomberg.

While the rebound in oil prices has stabilized an industry affected by the 2014 price collapse, there is growing concern that it could slow global growth.

This could be particularly damaging for emerging economies, where the weakening of local currencies -as in Argentina- makes dollar imports more expensive.

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