Ecuador will not be able to ride the ‘wave’ of better oil prices
Recovering the production that was had before the pandemic will take between 1 and 2 years; so we will lose the opportunity to get an additional $ 1.5 million in daily income
At the moment, the international price of WTI, which is the reference for Ecuadorian crude, averages $ 60 per barrel. The increase in the price is due to several factors. On the one hand, many shale oil production companies have closed or ceased operations in the United States; and the severe winter has seriously affected the operation of the facilities in Texas.
On the other hand, the OPEC countries, led by Saudi Arabia, have cut the world supply. Thus, we have a scenario where demand has increased by around 3 million barrels per day and current production is not enough to cover it.
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