Oil Fields in Ecuador Shut Down

Ecuador’s government was forced out of the capital, Quito, by violent protests earlier this week. The country is already in an uneasy state with the vulnerable economy that has been battered by lack of public transportation and blocked roads. These violent protests stem from President Moreno’s decision to cut subsidies which led to an extremely sharp increase in gas prices. Gas prices in Ecuador have increased up to 120%.  Due to these protests, the state-owned energy company Petroamazonas was forced to stop production after the fields were taken over by people not affiliated with the organization. The government has also deployed the army to key locations to safeguard the nation’s resources.

President Moreno  brought accusations against his former compatriots for allegedly staging a coup against him. The protestors are in large part, farmers and indigenous people as they feel the economic impacts heavily. Indigenous people have historically played a large part in political uprisings in Ecuador. CONAIE, a local organization of indigenous people, were instrumental in the ousting of then-President Jamil Mahuad. CONAIE is doing their part in this battle as they have thousands of people marching on the capital. During all the turmoil, Ecuador has announced their plan to leave OPEC as well.

Ecuador exports roughly 400,000 bpd as we await to see the effects of the suspension and whether it will be felt in the United States.

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