Argentina has decided to prolong a 99-day-old economic lockdown for three more weeks and put more stringent movement restrictions for people in densely populated areas in the country as a measure to contain a surge in COVID-19 cases. The policy is seen by many as a new cap in oil demand and production that had been improving from a low in April.
The extended restrictions will mostly affect Greater Buenos Aires (El Área Metropolitana de Buenos Aires - AMBA) and some other regions from July 1 to July 17, according to President Alberto Fernandez. AMBA is home to 14.8 million people, about a third of the country’s total population. It contributed to 97% of the most recent COVID-19 infections, he added.
The tighter restrictions are expected to dampen oil demand that had been recovering since May due to partial reopening of the economy. State-backed YPF said the relaxation had allowed it to increase utilization rates at its three refineries from a low of 47% in mid-April to 55%-60% last month. The Energy Secretariat said oil output dropped to 460,900 bpd in April, 9.2% lower than a year earlier.
