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Ecuador to Quit OPEC in 2020 in Search of Bigger Export Revenue

Reuters

   QUITO - Ecuador, one of the smallest members of the Organization of the
   Petroleum Exporting Countries (OPEC), said on Tuesday it will leave the
   14-nation bloc from Jan. 1 due to fiscal problems.

   The Andean nation is attempting to increase crude production to raise
   more income and has on multiple occasions broken its output quota fixed
   by OPEC.

   "The decision is based on the issues and internal challenges that the
   country must take on related to fiscal sustainability," the energy
   ministry said in a statement, without providing further details.

   "This measure is in line with the national government's plan to reduce
   public spending and generate new income," it added.

   Ecuador produces about 545,000 barrels per day (bpd) of crude, but is
   struggling with tight liquidity because of a wide fiscal deficit and a
   hefty foreign debt load.

   It reached a $4.2 billion deal with the International Monetary Fund in
   February which allowed it to receive an immediate disbursement of $652
   million and opened the door for an additional $6 billion in loans from
   other multilateral institutions.

   Despite its decision to leave OPEC, Ecuador will continue to support
   efforts to stabilize the world oil market, the ministry said.

   OPEC, Russia and other producers have since Jan. 1 implemented a deal
   to cut output by 1.2 million bpd. The alliance, known as OPEC+, in July
   renewed the pact until March 2020.

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