After Russia’s invasion of Ukraine has caused a rise in the price of crude oil worldwide. Today the price per barrel is set at $115.81, Brent crude and WTI —Ecuadorian crude marker— at $111.48. Values that have been increasing in recent days.
These values and price increases have a direct effect on the world economy and various productive sectors.
Who is really affected?
Francisco Silva, Vice President of the Chamber of Petroleum Derivatives Distributors (Camddepe), explained that after learning of the announcement of the Russian military operation, the price of crude oil has skyrocketed, and that there is a possibility that the price will continue to climb depending on the evolution of the conflict.
According to the economic analyst Alberto Acosta-Burneo, the oil exporting countries will have an additional expense, an increase in the cost of importing the derivatives.
“A higher oil price is going to have implications on both the supply and demand sides. There are very limited shipments of Russian crude to the Latin American region, but obviously any disruption in the global supply has an impact on the rest of the crudes”, he explains to BBC World ixchel castro, Manager for Latin America of Petroleum and Refining Markets of the consulting firm Wood-Mackenzie.
In the case of Ecuador, Acosta-Burneo comments that on the side of oil revenues is positivesince it is estimated that the country’s treasury receives around $50 million for every dollar that the price of a barrel of crude rises in a year.
“The Ecuadorian treasury would benefit because it will have additional income, it could be between 1,000 and 1,600 million additional dollars, it will depend on how long the high value is maintained,” says Acosta-Burneo.
Negative effect for exports
It also points out that there are negative consequences, since certain productive sectors will be affected. On the one hand, the increase in the price of all petroleum productsIn agriculture, the price of urea and fertilizers will continue to rise. Therefore, the products will increase their cost, according to the analyst, becoming more expensive could destroy competitiveness in the agro-export sectors.
Also, the cost of fuel would rise and would have an impact on all production chains due to the increase in transport value.
“Directly, crude oil exporting countries they will have additional salesthe problem is that if prices rise too high or remain high for too long, it reduces consumption and can lead to a recession in the United States, for example. This does not favor the rest of the world”, emphasizes Acosta-Burneo. (I)
Source: Eluniverso
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