The thesis of reducing supply to stop its price fall travels the world and reaches Ecuador. Lenin Moreno’s government will support a decision by the Organization of Petroleum Exporting Countries (OPEC) to reduce production when the group meets next week in Vienna, said Minister of Hydrocarbons Carlos Perez.
He did it during a visit to an oil field in the Amazon. He believes that the cut will have a positive impact on inventories and prices.
“We are going to support (a production cut) because that will have a positive impact. The time we put crude inventories under control, that has an impact on the price of crude, “he said in a tour of the facilities of the oil block Ishpingo-Tambococha-Tiputini (ITT).
“We believe that the statement made by OPEC in terms of reducing production may cause an increase in the price of crude oil in the first week of December.”
Ecuador is betting on an aggressive development plan for its biggest oil field to almost double its production next year, but does not believe it is in conflict with OPEC policies.
“The country requires these resources but I do not see any problems, because our production is marginal in the context of OPEC.”
It foresees to increase the production of the ITT field in the Yasuní reserve to114,000 barrels per day (bpd), part of an effort to improve the revenues of the tax crashes. The authorities also want to encourage drilling and secondary recovery activities in fields operated by private companies with service contracts.
The price of a barrel of Brent oil for delivery in January ended yesterday in the London futures market at 60.48 dollars, 2.85% more than at the end of the previous session.
The price of intermediate oil from Texas (WTI) rose 2.40% and stood at 51.63dollars a barrel in a day affected by expectations of a decline in production.
Oil thus recorded the highest daily rise of the last eight weeks, with which it recovers part of the losses recorded on Friday, when it fell a notable 7.7%.
ITT, with reserves of more than 1,600 million barrels, currently produces some 64,000 bpd.
The goal is to reach a total production of about 560,000 bpd in 2019. (I)