Sign in Subscribe
Petroleum industry

Ecuador and Venezuela Adjust Prices Amid Global Market Shifts

Strategic Insights

— 1 min read

The oil market is witnessing significant price adjustments in South America. Ecuador's state-owned PetroEcuador has cut its Oriente export price for the second time in just over a week, following stiff competition on the US west coast. The grade's widening differentials have put pressure on Alaskan ANS crude, with heavily discounted offers of WTI minus $3.50/bl being made available. Meanwhile, Venezuela is considering shifting its production of MTBE to iso-octane due to the phase-out of MTBE in the US. Additionally, Peru's liquefied petroleum gas (LPG) production is expected to triple by 2006 with the development of the giant Camisea gas project.

Key Takeaways:

  • PetroEcuador has cut its Oriente export price to WTI minus $9.30/bl, marking the second time in over a week that the company has reduced its export price to the US west coast.
  • The widening differentials of the Oriente grade have put pressure on Alaskan ANS crude, prompting discounted offers of WTI minus $3.50/bl.
  • Venezuela's Super Octanos joint venture is considering switching its production from MTBE to iso-octane due to the phasing out of MTBE in the US.
  • Peru's LPG production is expected to triple by 2006 to over 700,000 b/d with the development of the Camisea gas project.
  • Peru's current LPG production is 261,000 t/yr, with imports accounting for 142,700t.
  • Several US MTBE producers are considering shifting their plants to iso-octane production, but few incentives exist for US producers to change production in the absence of regulation.

Statistics:

  • PetroEcuador's Oriente export price has been cut by $4/bl since its mid-November price.
  • The Cabinet of Minister's directive specifies that refineries must determine whether their oxygen compliance program is working before implementing MTBE.
  • Peru's average LPG demand growth from 1990-1999 was 9.2%.
  • Peru's LPG demand grew by 16pc to 393,200t in 1999.
  • The Camisea gas project is expected to increase Peru's LPG production from 261,000 t/yr to over 700,000 b/d by 2006.

Sources:

  • "Ecuador Cuts Oriente Price" by OilPrice.
  • "Venezuela Considers Iso-Octane Shift" by OilPrice.
  • "Camisea to Boost Peru's LPG Exports" by OilPrice.

Read more