Posted On 04 Aug 2017
With a limited production and transportation infrastructure, Venezuela, like Ecuador, does not have the weight to cause an upward or downward impact on oil prices, according to analysts consulted.
Ecuador would have to look for other sources to stock up on derivatives in case the sanction against the Venezuelan state oil company PDVSA takes effect, says oil expert Augusto Tandazo. A global impact is not foreseen.
Former Foreign Minister Mauricio Gándara points out that the oil embargo may be a measure to pressure and generate political changes in Venezuela, but it must be accompanied by humanitarian aid to the population given the country’s high dependence on oil.
Ecuador produces 545 thousand barrels of oil per day on average whereas Venezuela produces 1’900.000. (I)