Ecuador has not only been affected by the decline in oil prices, but the slight drop in its production levels. The two variables undermined the revenues of the country.
But there is a third factor that also played against: the lower quality of crude oil, which continues to be a punishment. For example, the external market paid $ 8.83 less per barrel of Napo crude oil than the WTI crude of the Texas market, which serves as a marker for Ecuadorian prices. The good thing is that the Oriente crude obtained a smaller discount for its best quality. Thus, the market lowered only $ 4.53 per barrel as the Oriente oil (for having higher API degrees) is lighter and buyers pay more for it.
On average, from January to September, Ecuador received an income of $ 42.14 per barrel of Napo oil, while $ 46.44 for the Oriente oil. WTI traded in those same months at $ 50.97. The drop in oil prices is evident: the average of WTI until last September had been $ 98.06.
The level of production fell. According to statistics from the Central Bank of Ecuador (BCE), 70.3 million barrels of Oriente oil have been produced in the first nine months; and 31.2 million of Napo. In total, public and private production reached 148.9 million barrels, less than last year, when it was possible to extract 151.5 million barrels. In previous years, especially from 2006 to 2014, the production managed to grow at more dynamic rates.
Petroecuador exports meant an income of 4.586 million dollars. A year ago, for the same period, revenues totaled 9.449 million dollars.