Protests halt Ecuador oil exports
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Ecuador's state oil company says it is suspending crude oil exports following five days of protests in two provinces that have slashed production.
Hundreds of demonstrators in Sucumbios and Orellana have occupied oil installations and airports.
They want more of the country's oil money to be spent on infrastructure and new jobs. Ecuador is the fifth biggest oil producer in South America.
The government has declared a state of emergency in the region.
Oil price rises
Quito called in the army, which has used tear gas to disperse some of the protesters. The unrest has resulted in dozens of injuries.
"Our instructions are to restore order, affirmative," the general in charge of the operation told Reuters news agency.
However, a senior official in Sucumbios said his province's people were in revolt. Guillermo Munoz challenged the army "to throw us all in jail".
News of the halt in Ecuador's crude exports, as well as ongoing concerns over the tight level of US gasoline supplies, pushed the price of oil closer to $64 a barrel.
US crude oil rose 29 cents to $63.56 a barrel, while London-traded Brent crude r0se 20 cents to $62.60 a barrel.
The price of US crude had been falling from last Friday's record high of $67.10 a barrel.
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Correspondents say the unrest is the worst faced by President Alfredo Palacio since he came to power in April.
They say he is under pressure at home to abandon the free-market policies of his ousted predecessor, Lucio Gutierrez.
Not all sections of Ecuadoran society have benefited equally from oil revenues.
The traditionally dominant Spanish-descended elite gained far more than the indigenous peoples, who make up a large proportion of those who live in poverty.
Correspondents say revenues from the country's existing Amazon oil reserves are critical in keeping the country's economy afloat.
Oil sales account for about a quarter of Ecuador's GDP. According to the president of the country's Petroleum Industry Association, oil revenues have been put towards paying for both state sector salaries and a significant amount of the national debt.
Ecuador's state oil company says it is suspending crude oil exports following five days of protests in two provinces that have slashed production.
Hundreds of demonstrators in Sucumbios and Orellana have occupied oil installations and airports.
They want more of the country's oil money to be spent on infrastructure and new jobs. Ecuador is the fifth biggest oil producer in South America.
The government has declared a state of emergency in the region.
Oil price rises
Quito called in the army, which has used tear gas to disperse some of the protesters. The unrest has resulted in dozens of injuries.
"Our instructions are to restore order, affirmative," the general in charge of the operation told Reuters news agency.
However, a senior official in Sucumbios said his province's people were in revolt. Guillermo Munoz challenged the army "to throw us all in jail".
News of the halt in Ecuador's crude exports, as well as ongoing concerns over the tight level of US gasoline supplies, pushed the price of oil closer to $64 a barrel.
US crude oil rose 29 cents to $63.56 a barrel, while London-traded Brent crude r0se 20 cents to $62.60 a barrel.
The price of US crude had been falling from last Friday's record high of $67.10 a barrel.
Key resource
Correspondents say the unrest is the worst faced by President Alfredo Palacio since he came to power in April.
They say he is under pressure at home to abandon the free-market policies of his ousted predecessor, Lucio Gutierrez.
Not all sections of Ecuadoran society have benefited equally from oil revenues.
The traditionally dominant Spanish-descended elite gained far more than the indigenous peoples, who make up a large proportion of those who live in poverty.
Correspondents say revenues from the country's existing Amazon oil reserves are critical in keeping the country's economy afloat.
Oil sales account for about a quarter of Ecuador's GDP. According to the president of the country's Petroleum Industry Association, oil revenues have been put towards paying for both state sector salaries and a significant amount of the national debt.
posted by Marcel at 8:45 AM
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