Repsol YPF shares posted their biggest gain in almost two years after Argentina dropped a limit on crude exports and scrapped a proposal to prevent oil companies from repatriating proceeds from oil shipments.
Repsol rose as much as 1.14 euros, or eleven percent, to 11.89 euros after Vice Chairman Ramon Blanco announced the measures, in interviews with Clarin and La Nacion newspapers. Argentina accounts for two thirds of fuels production for Europe's fifth largest oil company.
“The Argentine government has opened its borders to oil exporting and Repsol is the company that stands to benefit the most from this change,” said Daniel Sanchez, who helps to manage 220 million euros at BCN Finances in Barcelona and owns shares in Repsol.
Repsol's exposure to Argentina has reduced earnings and the share price in recent months because of the currency devaluation and the country's four year economic slump. Repsol paid $15 billion for YPF in 1999.
The Americans came to realise that they would have to either leave the region or weaken their presence there. It is Russia that is filling the vacuum now