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by Stockwatch Business Reporter

West Texas Intermediate crude for August delivery added 38 cents to $46.40 on the New York Merc, while Brent for September added 42 cents to $48.84 (all figures in this para U.S.). Western Canadian Select traded at a discount of $10.30 to WTI ($36.10), down from a discount of $9.30. Natural gas for August added seven cents to $3.09. The TSX energy index added a fraction to close at 170.27.

The oil price gains came despite a remarkable announcement from Ecuador, one of the OPEC members that had signed the OPEC/non-OPEC production-cutting pact in November. The country has now openly declared that it will not be honouring its commitments under this agreement. It had not been honouring them anyway, but to give a public statement to this effect is rare. In an interview late yesterday with local television network Teleamazonas (as reported by Bloomberg), Ecuadorean Oil Minister Carlos Perez said the country simply needs the money too badly to cut its production, and will in fact be doing the exact opposite. "There's a need for funds for the fiscal treasury," said Mr. Perez, "hence we've taken the decision to gradually increase output."

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