President Javier Milei’s victory in the October midterms served as a calming balm for many market sectors. Oil and gas appear as one of the main benefactors, as La Libertad Avanza’s landslide win has prompted a boom in corporate bonds. 

The sector’s companies are bullish all around. Most are flocking to the markets looking for investors after experiencing a lull in the months leading up to the election due to high country risk (and therefore, prohibitive interest rates) and exchange rate pressure. Others are announcing new projects, like Vista Energy, which recently confirmed a US$4.5 billion investment in Vaca Muerta, a shale oil and gas region in the south of the country.

Analysts agree that the fall in country risk after the vote (from over 1,000 to around 600 basis points) is the main driver of the boom. According to economist Lorenzo Sigaut Gaviria, from the Equilibra consulting firm, the midterms were a “turning point” considering the situation prior to the elections

“July, August, September, and October were very slow, with a lot of uncertainty, a lot of risk, a lot of exchange rate pressure, and the sale of reserves from the National Treasury, the........

© Buenos Aires Herald