Argentina to Subsidize Oil Exports

Exporters of heavy crude from Argentina will receive a $7.5 per barrel subsidy from the government as long as international prices remain under $47.5 per barrel, the energy ministry said on Friday.

The policy, which applies to crude exports from the San Jorge basin in Patagonia, was announced as Argentina's new government seeks foreign investment to help jumpstart a stagnant economy.

Brent crude futures were at $40.72 per barrel Friday morning.

"Considering that the price of crude oil has been in sharp decline over the past two years, it is necessary to apply stimulus measures to mitigate the impact of such reductions on the level of activity and local employment," the announcement said.

Reporting by Maximiliano Rizzi