Argentina freezes oil price at $56 to restrict inflation

Argentina’s economy ministry has agreed to freeze domestic crude oil prices at $56 per barrel until the end of October, following an agreement with the industry. The price cap, which comes after meetings between Economy Minister Sergio Massa and executives from oil companies like YPF and Vista, aims to help tamp down triple-digit inflation.

The local crude oil barrel price is below the $63 it was before and well below the Brent crude benchmark at about $85. Argentina has long controlled the domestic oil price.

The local industry, which produces oil and gas mainly from Argentina’s Vaca Muerta shale formation, has agreed to a fixed price until October 31. The South American nation has been battling against 113.4% annual inflation, which topped 113.4% through July.