Ecuador's Energy Minister: Oil production could be halted entirely within 48 hours

Dhwani Mehta FXStreet

Ecuador's Energy Minister Xavier Vera-Grunauer warned Sunday that oil production had reached a "critical" level and could be halted entirely within 48 hours if protests and roadblocks continue.

Key quotes

"Oil production is at a critical level.”

"If this situation continues, the country's oil production will be suspended in less than 48 hours as vandalism, the seizure of oil wells and road closures have prevented the transport of equipment and diesel needed to keep operations going."

"Today the figures show a decrease of more than 50 percent" in production which, before the protests, was at roughly 520,000 barrels per day.”

Meanwhile, President of Ecuador reportedly said that fuel prices will be lowered, per AFP News.

Market reaction

WTI is back in the green zone following the above news, having erased early losses triggered by the G7 discussion on Russian oil exports and the Iran nuclear deal. The US oil is now trading at $106.32, up 0.19% on the day.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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