Riyadh: Wednesday saw a slight increase in oil prices as industry data revealed a larger-than-anticipated decrease in US inventories, indicating strong demand from the world's largest oil consumer. However, the gains were constrained by concerns over interest rate hikes.
At 09:28 a.m. Saudi Arabian time, Brent crude futures increased by 43 cents, or 0.60 percent, to $72.69 a barrel, while US West Texas Intermediate futures increased by 40 cents, or 0.59 percent, to $68.10 a barrel.
On indications that central banks might not be finished raising interest rates, both contracts had dropped by about 2.5 percent in the previous session.
Also Read: Locals and media report that 10 civilians were killed in airstrikes in Myanmar
The week ending June 23 may have seen a decrease in crude stocks of about 2.4 million barrels, according to recent data from the American Petroleum Institute.
According to the CEO of Uganda National Oil Co., oil production from the Tilenga project is anticipated to begin in the first half of 2025.
"The drill kits have been put up and the drilling has started," Proscovia Nabbanja told Reuters outside the Energy Asia conference. "We are on schedule to produce our first oil in H1 2025."
The Tilenga project is run by French energy giant TotalEnergies in collaboration with China's CNOOC Ltd. and UNOC in the Buliisa and Nwoya districts of Uganda's Lake Albert oilfields.
The $3.5 billion East African Crude Oil Pipeline will carry oil from the Tilenga project to the port of Tanga in Tanzania for export.
Also Read: Poland receives the initial shipment of US-made Abrams tanks
By as early as 2025, the EACOP will be able to export up to 246,000 barrels of crude per day to international markets.
With a 62 percent stake in EACOP, TotalEnergies is the company with the largest ownership. Tanzania Petroleum Development Corp. and UNOC, both owned by the Chinese government, each own 15% of the company, along with the remaining 8% being held by CNOOC.
The federal power company of Mexico, Comision Federal de Electricidad, announced on Tuesday that it had signed a $300 million agreement to develop natural gas infrastructure with ESENTIA Energy Systems.
Also Read: Pakistani Raid Eliminates Daesh Commander Major Blow to Militant Hideout
The agreement, which was signed on June 20, aims to improve current pipelines and incorporate new natural gas delivery points to serve CFE power plants and communities, according to a statement from the Mexican state power company.
The power company added, "The agreement will also give both parties the opportunity to resolve a number of ongoing legal disputes."