Chile restarts work amid pockets of unrest

: Crude oil, Oil products
19/10/21

Chile is slowly getting back on its feet after more than three days of violent protests that have claimed at least 13 lives.

Pockets of unrest persist in Santiago, Concepcion and other cities, and many Chileans are working from home today as transportation is limited.

In a volatile opening session, the Santiago stock market's IPSA index, which includes big energy companies such as fuel distributor Copec, dropped more than 3pc and the Chilean peso depreciated sharply against the US dollar.

The Santiago metro resumed partial operations on one of six lines this morning after more than half of its stations were torched and vandalized by protesters, causing an estimated $200mn in damage. The crisis, which was sparked by a metro fare hike that was later rolled back, has been marked by widespread looting at supermarkets, small shops and a few private homes, even amid a nighttime curfew and broad military presence. Some businesses have reopened today but plan to close early in anticipation of another restive night.

The crisis afflicting Latin America's most advanced economy and stable democracy has sent shock waves across the region. The violent protests broke out two weeks after a similar crisis erupted in Ecuador over the removal of fuel subsidies. Opponents of Venezuelan president Nicolas Maduro blame his government for seeking to destabilize Latin American countries such as Ecuador and Chile that no longer recognize him as Venezuela's legitimate leader. In a 16 October statement, the office of secretary general Luis Almagro of the Organization of American States warned of Venezuelan and Cuban efforts to undermine democracy in the region.

Santiago regional supervisor Karla Rubilar this morning called for "reconstruction", dismissing President Sebastian Pinera´s controversial assertion yesterday that the country is at war.

"We need to recognize with humility that we didn't see what was happening, to understand people's frustration and anger," Rubilar said. "It is time to rebuild confidence and of course the city."

Energy minister Juan Carlos Jobet is among the cabinet ministers meeting at La Moneda presidential palace this morning. Panic buying and vandalism at some service stations have created sporadic fuel shortages in Santiago and other cities, but supplies are normal, according to the energy ministry.

"At this hour 93pc of the stations nationwide are totally operational, supply assured," Jobet said.

State-owned oil company Enap said its operations are normal and its installations have not been affected by the crisis. Enap has two refineries with total nameplate capacity of around 220,000 b/d.

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25/04/14

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