Oil prices rise today as Ecuador and Venezuela nationalize oil

Oil prices will rise today because of Ecuador and Venezuela

In brief: Ecuador authorized the nationalization of oil fields, oil prices rise. Oil will not be cheap anymore?

Ecuador and Venezuela have decided to seize the oil fields. Oil prices begin to rise today already. President Rafael Correa of Ecuador has introduced a law that allowed municipalities to nationalize the oil fields, if a private company that owns them, refuses to enforce local laws.

Mr. Correa entered into force on the law without the approval of Parliament (National Assembly), as the deputies overdue date discussion of this document. According to Ecuadorian law the president can enact a bill if the Parliament within a certain period had not considered it and has not made a decision – to endorse or reject it. In addition to the nationalization of the permission, the law also aims to change the conditions of production sharing contracts for the provision of services for the development of state oil and gas. Opponents of the law believe that it will lead to diversion of investment from the oil sector of the economy of Ecuador, which is the main.

Anrey Torbinski
2010-07-25 14:01, Commodities.

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