Repsol YPF shares dropped to a more than three year low after Argentina imposed restrictions on oil exports to avert an increase in domestic oil prices.
Repsol shares fell 48 cents, or 3.8 percent, to 12.12 euros, their lowest since October 1998. Argentina limited Monday oil exports to thirty six percent of production for companies such as Repsol.
Though Repsol exports only twenty eight percent of its Argentina output, the new measure sparked concern that the government may impose additional restrictions or taxes on the oil companies to raise revenue amid a four-year economic slump, analysts said.
“The situation in Argentina is still not fully discounted in Repsol's price,” Ibersecurities said in a note to investors.