Compilation by Sahar Yaghoubi
YPF (YPFD.BA), Argentina’s national oil company, said on Tuesday that it increased gasoil supplies to their highest level in a decade last month and in the first few days of April in order to fulfill soaring demand for motor fuels.
An Argentinean form of diesel fuel known as gasoil, is mostly utilized as truck fuel, particularly in the country’s important agricultural industry. Farmers issued a scare last week, stating that there will be shortages.
“YPF is putting out its best production, import, and logistical efforts to meet the increased demand for diesel in the face of worldwide fuel shortages,” the company said in a statement.
“Gasoil for agricultural output is assured,” YPF noted, without providing any more information on supply sources or quantities.
Global competition for oil and natural gas supplies after Russia’s invasion of Ukraine has compelled several nations to investigate means of increasing fuel supply for domestic consumers, with crude oil and processed goods prices climbing as the world’s economy becomes more unstable. Russian President Vladimir Putin has described his country’s efforts in Ukraine as a “special operation.”
According to a corporate source, demand for motor gasoline has increased in part as a result of pricing differentials with neighboring nations, particularly those in close proximity to Argentina’s borders. In accordance with business policy, the official did not want to be named.
The source, who also declined to provide volume information, added that gasoil demand during the first two months of this year was up 8 percent when compared to the same period in the year before the pandemic and that the same level of demand growth is expected to continue through at least the end of June.
Sergio Affronti, the chief executive of YPF, has previously said that the company hopes to treble crude oil output by 2026, from around 220,000 barrels per day (BPD) to approximately 450,000 BPD.
In Argentina, the country’s largest oil firm derives a significant and rising amount of its production from the huge Vaca Muerta shale formations, which are the world’s fourth-largest reserve of shale oil and second-largest reserve of natural gas.
