Oil prices experienced a modest gain on Wednesday after industry data showed a larger-than-expected decline in US stocks, signalling robust demand from the country that consumes the most oil globally. Concerns about interest rate increases, however, limited the gains.
Brent oil prices rose by 43 cents, or 0.60 percent, to $72.69 a barrel at 9:28 a.m. Saudi Arabian time, while US West Texas Intermediate futures rose by 40 cents, or 0.59 percent, to $68.10 a barrel.
Both futures had decreased by around 2.5 percent in the previous session due to signs that central banks would still be hiking interest rates.
According to latest statistics from the American Petroleum Institute, oil stockpiles may have dropped by around 2.4 million barrels for the week ending June 23.
Oil production from the Tilenga project is projected to start in the first half of 2025, according to the CEO of Uganda National Oil Co.
Outside of the Energy Asia conference, Proscovia Nabbanja told Reuters that “the drill kits have been put up and the drilling has started.” We will start producing oil in the first quarter of 2025, as planned.
The Tilenga project is managed by French energy company TotalEnergies in association with UNOC, China’s CNOOC Ltd., and Uganda’s Lake Albert oilfields’ Buliisa and Nwoya regions.
The Tilenga project will export oil through the $3.5 billion East African Crude Oil Pipeline to the port of Tanga in Tanzania.
The EACOP will be able to export up to 246,000 barrels of petroleum per day to foreign markets as early as 2025.
TotalEnergies is the organisation with the highest ownership in EACOP, holding a 62 percent interest in it. 15% of the corporation is owned by Tanzania Petroleum Development Corp., 15% by UNOC, which is controlled by the Chinese government, and 8% by CNOOC.
On Tuesday, Comision Federal de Electricidad—Mexico’s federal power company—announced the signing of a $300 million contract with ESENTIA Energy Systems for the construction of natural gas infrastructure.
According to a statement from the Mexican national power company, the deal, which was signed on June 20, intends to enhance present pipelines and add new natural gas distribution stations to serve CFE power plants and communities.
The electricity company said, “The agreement will also give both parties the opportunity to resolve a number of ongoing legal disputes.”
