The Argentina oil industry has been more or less reduced to a utility under a presidential decree announced last Friday. But the new rules don’t provide the kind of monopoly risk profile usually associated with lower margins.
China is buying African oil and Libyan wells are pumping, getting traders excited about the continent’s theoretical energy wealth again. But instead of waiting for the drills to start turning, why not lock down exposure to the countries and companies we know have the crude?
Markets today reacted to multiple pieces of positive news from China overnight. A higher than expected Purchasing Managers’ Index and lower than expected inflation reading both helped markets to move up.
Last week gold traders felt the volatility that only gold can deliver. Wednesday there was a sharp selloff in gold and silver, only to rocket back and post weekly gains for both metals going into the weekend.
Argentina, the third largest economy in Latin America, reportedly added roughly 7 tons of gold to its holding in September last year, which brought its total reserves to 61.74 tons according to today’s International Monetary Fund report.
The internet has exploded with commentary on Argentina’s decision to re-nationalize hydrocarbon firm YPF. While the Western world was aghast at the government’s decision and worried about the future of foreign direct investment in the country, the Argentinian press and public welcomed the return of the formerly state-owned firm.