• 2 minutes CV19: New York 21% infection rate + 40% Existing T-Cell immunity = 61% = Herd Immunity ?
  • 4 minutes Is The Three Gorges Dam on the Brink of Collapse?
  • 7 minutes Sources confirm Trump to sign two new Executive orders.
  • 45 mins In a Nutshell...
  • 1 day No More Love: Kanye West Breaks With Trump, Claims 2020 Run Is Not A Stunt
  • 1 day The Coal Industry May Never Recover From The Pandemic
  • 11 hours Better Days Are (Not) Coming: Fed Officials Suggest U.S. Recovery May Be Stalling
  • 2 days A Real Reality Check on "Green Hydrogen"
  • 2 days Why Oil could hit $100
  • 15 hours Where is Alberta, Canada headed?
  • 1 day During March, April, May the states with the highest infections/deaths were NY, NJ, Ma. . . . . Today (June) the three have the best numbers. How ? Herd immunity ?
  • 23 hours Putin Paid Militants to Kill US Troops
  • 2 days Why Wind is pitiful for most regions on earth
Battery Metal Sector Sees Light At The End Of The Tunnel

Battery Metal Sector Sees Light At The End Of The Tunnel

The COVID-19 pandemic has significantly…

Tesla’s Ambitious Plan To Ditch Cobalt

Tesla’s Ambitious Plan To Ditch Cobalt

Tesla is set to disrupt…

Ecuador Leaves OPEC, Declares State Of Emergency Amid Protests

Ecuador’s President Lenin Moreno declared a nationwide state of emergency on Thursday amid violent protests across the country over the end of fuel subsidies that have been in place for decades.

Protests erupted in the Latin American oil producer—a member of OPEC that has just announced its intention to quit the cartel—after Moreno said that the fuel subsidies that had been in place for 40 years would end.  

According to Moreno, in office since 2017, the fuel subsidy is “perverse” and has distorted Ecuador’s economy over the past few decades. The country can no longer afford the costly subsidy, the president says as he pushed through with a US$2 billion package of fiscal reforms.

The fuel subsidies cost the government of Ecuador as much as US$1.3 billion every year, according to the BBC

The end of the subsidy, however, is more than doubling gasoline and diesel prices in Ecuador and the people are not taking it well.

Protesters erected barricades, while riot police fire tear gas at protesters in one of the most violent unrests in the South American country in the past few years.

While the government says that the subsidies need to go away to stop fuel smuggling and incentivize Ecuador’s flagging economy, people are angry that the much higher prices would significantly affect their lives and spending. Bus, truck, and taxi drivers are blocking the streets in Ecuador, demanding the government withdraw the reforms and reinstate the fuel subsidies.

The protests and the end of the subsidies come as Ecuador also announced this week that it would quit OPEC effective January 1, 2020, because of its fiscal problems as it seeks to raise government income and cut spending.

According to OPEC’s latest available figures, Ecuador pumped 537,000 bpd of crude oil in August.

Ecuador leaving OPEC will not have a major impact on the organization, analysts say, while Ecuador said that it would continue to support OPEC’s efforts to stabilize the oil market.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News