The dilemma of a very cheap oil

Image: Expreso

“Why Ecuador continues to produce oil if it is more expensive than what it sells? Because it has no choice. It has to keep producing to pay debts.” This is the scenario summarized by former secretary of OPEC (Organization of Petroleum Exporting Countries) Rene Ortiz.

Ecuador, according to the analyst, owes to oil operators, to oil service providers, it has to pay to China, it must cumply with the anticipated sale of barrels ($ 5,000 million to Petrochina since 2009 and $ 2,500 million plus 116 640 000 barrels, to Thailand since 2015) and, finally, it has to pay its general debts. (I)

Source: http://expreso.ec/expreso/plantillas/nota.aspx?idart=8838979&idcat=38229&tipo=2