Ecuador has become the first country to publicly admit it will not meet Opec’s production curbs, saying it needs to pump more oil to address its fiscal deficit.

The South American country’s promised cut of 26,000 barrels of oil a day is a tiny drop in the 1.8m b/d that the cartel recently agreed to curb until early 2018, but the decision is still the first crack in the deal’s unity.

“There’s a need for funds for the fiscal treasury, hence we’ve taken the decision to gradually increase output,” oil minister Carlos Perez told local television, adding he did not think the decision would have a big impact on Opec’s output. Italian company plans to drill four exploration wells in the Arctic, which some say will endanger polar bears, bowhead whales and other marine mammals. However, experts said the move could embolden other countries to rethink their commitment to the cuts. Opec producers and non-members including Russia extended but did not deepen production cuts at the end of May, and the oil price subsequently fell by 8% in June.(theguardian)…[+]