Unrest in Ecuador may affect oil prices

If Ecuador has difficulties exporting oil due to the current unrest in the country, this could lead to an increase in oil prices on the world market. At the same time, experts note that this situation will benefit Russia.

Ecuador currently exports about 800,000 barrels of oil per day, and a reduction of 30-50% will have a significant impact. Such a move by Ecuador will push oil prices up, which may be beneficial for Russia, one of the world's largest oil producers.

At the same time, the situation will act against the interests of oil-consuming countries, and therefore the United States, the European Union and other countries will seek to resolve conflicts in Ecuador in order to ensure the stability of oil production. In order for oil prices to rise, serious disruptions of the oil and gas infrastructure are necessary, or the termination of work of workers at fuel facilities. So far, there are no such signs, but the possibility of such a scenario exists due to internal conflicts in Ecuador.

Some analysts believe that at the moment there is no significant threat to Ecuadorian oil. Perhaps, in an unstable situation, someone will try to sell oil at lower prices, especially when shipping oil to tankers of third-party companies that may be afraid to enter the ports of Ecuador. Such actions may be accompanied by the provision of discounts for risk, but this is the exception rather than the rule.

Recall that on January 7, armed riots began in Ecuador, which led to a large-scale rebellion. Armed criminals take hostages and free prisoners from prisons.