Wine is one of the utmost popular drinks consumed worldwide. The escalating demand for wine, because of its unusual taste and health assistances is one of the key aspects boosting the growth of the global wine market. The global wine mar…
BMI View: Highly prospective acreage, a strengthening competitive landscape and supportive pricing
dynamics will help insulate the Argentine shale sector from aggressive clawbacks in industry spending. A
shift toward a more investor-friendly mandate under the Macri administration will open up significant
opportunities in Argentina's upstream sector. As such, the core Neuquén shale province will benefit from
increased development over the course of the next decade, although more peripheral shale formations
could take longer to develop.
Latest Updates And Key Forecasts
- Our neutral outlook for prices over H216 continues to play out and we maintain our USD46.5/bbl average
forecast for Brent this year. We expect significant support around USD42.0/bbl to hold and for a rebound
from these levels over the coming weeks.
- Economic activity growth in Argentina will be driven by surging investment over the coming years. After
years of underinvestment due to macroeconomic instability, interventionist government policy and a lack
of access to capital markets, investment will flock to key sectors including agriculture, energy and real
estate following the economy's rapid liberalisation under President Mauricio Macri.
- Although real GDP will contract 0.6% y-o-y in 2016 as a result of elevated inflation and rising
unemployment, increasing investment over the coming quarters will lead to a strong rebound in 2017.