Ecuador president announces oil production cuts
President Rafael Correa has announced Ecuador will suspend oil production by Italy's Agip and reduce quotas for other companies to comply with new OPEC cuts, AP reported.
Correa said on Saturday that he has ordered Ecuador's oil minister to cut off all production by Agip, a subsidiary of Eni SpA, Italy's largest natural gas and oil company.
Agip produces 28,000 barrels of oil a day from Ecuador's Amazon jungle. Correa criticized terms of the government contract with Agip.
An Eni spokesman in Italy declined to comment. Agip officials in Ecuador were not available.
The president announced cutbacks for other private oil producers without identifying the companies.
The Organization of Petroleum Exporting Countries, which accounts for about 40 percent of global supply, has announced crude production cuts totaling more than 4 million barrels per day as it tries to stop declining prices.
OPEC members, however, have a history of ignoring announced quotas and crude traders have been waiting for concrete evidence that the 13-nation group was tightening the spigot.