Goodbye Lenin

2 October 2019 By Anna Szymanski Follow @Three_Guineas

Saudi Arabia may shrug off the latest departure from the oil-producing group over which it presides. Ecuador has other priorities that make it expedient to detach. But the net effect is bad for OPEC, because it’s a reminder that the value of membership is dwindling.

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Ecuador said on Oct. 1 that it will leave the Organization of the Petroleum Exporting Countries in January 2020 so that it will be free to increase production to meet domestic needs.

The country produces around 545,000 barrels a day, the fourth-lowest production level among OPEC’s current 14 members and less than 2% of total production.

Ecuador originally joined OPEC in 1973 before withdrawing in 1992. It rejoined in 2007 under then president Rafael Correa.

OPEC is currently committed to cutting supplies by 1.2 million barrels a day to support prices. The pact expires in March 2020.

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