Brent crude oil rose 5.4% and closed at $64. WTI crude oil rose 5.3% and closed at $60.80. The increases are due to a report on crude oil inventories in the United States, which showed a higher demand from refineries, and to difficulties in navigation in the Suez Canal, a key route for crude oil shipments from Arab oilfields.
The Government confirmed that the IMF would grant the country $4.35 billion in Special Drawing Rights. It would alleviate the Government's economic plan and would allow the country to meet its maturities with the organization this year.
The inauguration of the US Secretary of Commerce, Gina Raimondo, came with disturbing news for Argentina: she anticipated global tariffs changes in the short term. Argentina achieved quotas for steel exports of 180,000 tons complied with and that enter without paying tariffs. The same applies to aluminium, which shipped without restrictions. It maintained until now. For Argentina, this means total exports of $700 million. That is what is at stake if this preference is modified.
Argentina is the IMF's primary debtor, owing to it $46 billion. For the organization, this represents almost one-third of its total debts. It is now urgent that in the talks and subsequent negotiations with the Fund, it is possible to postpone this year's maturities, which amount to $3.65 billion in principal and close to $1 billion in interest. Argentina's interest payments are almost half of what the IMF will charge all countries for that concept. Argentina is a good client for the Fund and a significant contributor to the Fund's annual cash flow.
The International Monetary Fund's executive directors are discussing a new allocation of special drawing rights (SDRs) of $650 billion to boost reserves and help the global recovery of Covid-19. For Argentina, this would mean an income in the order of $4.35 billion.
The state-owned oil company YPF paid on Tuesday $172 million correspondings to principal and interest of the Class XLVII Negotiable Obligation. The company could access the official foreign exchange market without problems in line with the authorization it received from the Central Bank due to the international debt exchange completed in February.
A ranking prepared by The Economist magazine placed Argentina in the first places in terms of risk for investors, only surpassed by Venezuela, Haiti and Cuba. The report, which warns about the advance of populist alternatives in different Latin American countries, showed that the country's item that obtained the worst score was an economic risk. In contrast, specialists warned that if macroeconomic imbalances are not corrected, a solid monetary and inflationary adjustment will occur.
Initially, they confirmed that Argentina would again export gas to Brazil, then the entry of shrimp, banned in Brazil since 2013, was made official. Now, eight sanitary barriers have been lifted, which will allow exports for $1 billion. These include grapes, bovine breeding stock, bovine embryos, dairy products, pinewood, almonds, plums and heparin.
The Government presented the Cooperation Plan with China for the development of exports by Argentine SMEs. The official intention is to guarantee disbursements for more than $30 billion through investments in the business niches that have been attracting the attention of the Chinese in recent years.
West Texas Intermediate (WTI) crude oil, which trades on the New York futures market (Nymex), was up 0.14% this morning and was trading at $66.11 a barrel in contracts for delivery in April. Similarly, North Sea Brent crude oil, which trades on London's electronic futures market (ICE), gained 0.22% and was trading at $69.78 a barrel in contracts for May delivery.