Heading: Oil Prices Rise on Strong US Demand and Drawdown of Inventories
Oil prices saw a slight increase on Wednesday following industry data that revealed a larger-than-expected drawdown of US inventories. This signals robust demand from the world’s biggest oil consumer. However, concerns over interest rate hikes limited the gains. Brent crude futures rose by 0.60 percent to $72.69 a barrel, while US West Texas Intermediate futures gained 0.59 percent to $68.10 a barrel. In the previous session, both contracts had fallen by about 2.5 percent due to signals that central banks may continue with interest rate hikes. The recent data from the American Petroleum Institute showed a decrease of about 2.4 million barrels in crude stocks for the week ending June 23.
Heading: Uganda Expects Oil Production to Begin in 2025
Uganda National Oil Co. announced that it expects oil production from the Tilenga project to commence in the first half of 2025. Proscovia Nabbanja, the company’s CEO, stated that drilling has already begun and they are on track for first oil in H1 2025. The Tilenga project, located in Uganda’s Lake Albert oilfields, is operated by TotalEnergies in partnership with CNOOC Ltd. and UNOC. Oil from this project will be transported through the East African Crude Oil Pipeline (EACOP) to the port of Tanga in Tanzania for export. The EACOP has the capacity to send up to 246,000 barrels of crude per day to world markets by 2025. TotalEnergies holds a 62 percent stake in EACOP, with other investors including UNOC, Tanzania Petroleum Development Corp., and CNOOC.
Heading: Mexico’s CFE and ESENTIA Collaborate on $300 Million Gas Project
Mexican state power utility, Comision Federal de Electricidad (CFE), has signed a memorandum of understanding with ESENTIA Energy Systems to develop natural gas infrastructure with a $300 million investment. The agreement, signed on June 20, aims to optimize existing pipelines and include new natural gas delivery points to serve CFE power plants and communities. Additionally, the collaboration will help resolve various pre-existing legal disputes between the two parties.
In conclusion, oil prices experienced a slight increase due to strong demand from the US and a drawdown of inventories. Uganda is set to begin oil production in 2025 through the Tilenga project, which will be transported via the East African Crude Oil Pipeline for export. Mexico’s CFE and ESENTIA are collaborating on a gas project to enhance natural gas infrastructure and resolve legal disputes. These developments in the oil and gas industry have significant implications for global energy markets and economic growth.