Argentina Virtually Stops Exporting Oil To Brazil

Argentina, once a major oil exporter to Brazil, has virtually stopped supplying its neighbor with crude as its oil production dwindles while domestic consumption is rising, Brazil’s Valor newspaper said Thursday.

While Argentina in 2002 still provided 16.6% of Brazil’s oil-import needs, in 2005 it supplied only 1.2%, and almost none in the first nine months of 2006, the newspaper said, citing Brazil’s Industry and Trade Ministry.

Brazil is on the eve of becoming self-sufficient in oil and oil products. But the country still needs to import light oil for the production of high- quality fuels, while it exports heavy crude.

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