Metallurgy / Chemicals / Rubber & Plastics

Ecuador's energy ministry said on the 26th that the country's oil production was at a "tipping point" and that if demonstrations and road closures continued, production could be halted within two days.

"If this situation persists, Ecuador's oil production will be suspended for 48 hours, as the destruction of public facilities, the occupation of oil wells and the closure of roads hinder oil transportation and exploitation activities," Ecuador's energy ministry said in a statement. Necessary diesel supply."

The official agency said that after two weeks of demonstrations against high prices, "oil production has reached a tipping point", with roads blocked in 19 of the country's 24 provinces. "Oil production is down 50% today," compared to 520,000 barrels per day on June 12. Ecuador is rich in oil and natural gas resources, and oil is its largest export commodity.

Nearly 14,000 people across the country took part in demonstrations to protest rising prices and demand lower fuel prices. According to the police, nearly 10,000 people participated in the demonstrations in the capital Quito alone. There are already signs of scarcity in Quito, with prices soaring and many markets closed.

According to an NGO statistics, violent clashes between demonstrators and security personnel have resulted in five deaths. According to various sources, the clashes have left about 500 wounded, including civilians, police and soldiers.

Ecuador's Production Minister Prado said on the 26th: "Including the public industry, the oil industry and the private production sector, the total economic loss has reached 500 million US dollars. Every day of stagnation means a loss of 40 to 50 million US dollars."

Prado explained in detail: “In the dairy sector, 8.5 million liters of milk, equivalent to US$13 million, have been lost. In agriculture and breeding, the loss exceeds US$90 million. The crisis is particularly severe in the poultry industry, where many birds die in large numbers due to lack of food. Or forced to be slaughtered. The flower industry also took a huge hit, losing $30 million in 12 days.”

The travel industry is also a hugely affected industry, with about 80% of orders canceled, costing at least $50 million.