• 4 minutes "Natural Gas Trading Picks Up Considerably Amid High Volatility" by Charles Kennedy - ...And is U.S. NatGas Futures dramatically overbought at the $6.35 range?
  • 8 minutes How Far Have We Really Gotten With Alternative Energy
  • 12 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 17 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 15 hours What China is Learning from Russia's War in Ukraine and its Consequences
  • 4 days Revisiting: "The U.S. Grid Isn’t Ready For A Major Shift To Renewables" from March 2021 by Irina Slav at OILPRICE
  • 14 hours Natural Gas is the Cleanest and most Likely Source of Energy to Fuel the World.
  • 7 days How cheap Chinese tires might explain Russia's 'stalled' 40-mile-long military convoy in Ukraine
  • 3 days Failure To Implement Russian Oil Ban Could Send Oil Crashing To $65
  • 1 hour Advancing Fundamental Drilling Science - Geothermal drilling successes offer potential gain for petroleum industry
  • 47 mins "Russia will stop 'in a moment' if Ukraine meets terms - Kremlin" by Reuters via Yahoo News...but Reuters suddenly cut out the balanced part of the story.
Editorial Dept

Editorial Dept

More Info

Global Energy Advisory 21st July 2017

Ecuador has announced plans to start increasing its oil output, effectively breaking off its engagement with OPEC in the cartel’s production cut deal. Ecuador is a small producer and it had pledged to cut 26,000 bpd from its oil output, which it never did. It cut about 60% of that, so its daily production currently stands at 545,000 barrels. That’s a bit more than what Saudi Arabia undertook to slash from its daily output to support prices.

The initial announcement by Ecuador’s Oil Minister Carlos Perez struck the market hard, and many worried this would be the end of the deal as other financially strained OPEC members could use the precedent to leave the deal. A day later, however, Perez was quoted by media as saying that Quito would maintain its support for the oil production cut efforts of OPEC and its partners. The Andean country has so far reduced its output by 16,000 bpd, he said, for “tax needs.”

The two statements seem to be contradictory. Perhaps the OPEC leadership had something to say after the first announcement and the implications it might have for other cartel members. Media that covered the announcement noted that this is the first time an OPEC member has publicly declared a rank-breaking move.

So far, no other OPEC members have taken up Ecuador’s example. They will probably wait until the July 24 meeting of the ministerial committee that monitors compliance with the cut, but it seems that there is little…




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News