Oil Prices Continue to Rise

It is Thursday, July 18, 2024, and I am bringing you up to speed on all the recent developments in the oil and gas sector. Here we go with the latest developments.

Exxon Mobil Plans Major Oil Expansion in Guyana

Exxon Mobil Corp intends to drill up to 30 wells for its new Hammerhead oil project in Guyana, which is expected to start production in 2029. This project will increase the country’s oil production capacity to over 1.4 million barrels per day. The Hammerhead project, pending government approval, will have a floating production unit and aim for a daily output of 120,000-180,000 barrels of crude oil.

U.S. Eases Venezuela Sanctions, PdVSA Still Restricted

The U.S. has relaxed some sanctions on Venezuela, allowing LPG exports until July 2025, but continues to block transactions with state oil company Petróleos de Venezuela, S.A. (PdVSA). This move comes after the previous license expired and amid ongoing tensions between Venezuela and Argentina.

Ukraine Sanctions Halt Russian Oil Supply to Hungary

Ukraine’s new sanctions on Russian oil company Lukoil have stopped Russian crude deliveries to Hungary, which were previously transported via the Druzhba pipeline. Hungary is working with Lukoil and Russia to resolve the issue and resume oil supplies for energy security. Despite EU regulations allowing Russian oil imports, current restrictions affect Hungary’s access to this energy source.

Oil Prices Rise as EIA Reports Crude Draw and Mixed Fuel Inventories

Oil prices increased after the U.S. Energy Information Administration (EIA) reported a 4.9 million-barrel draw in crude oil inventories for the week ending July 12. Gasoline inventories rose by 3.3 million barrels, while middle distillates saw a 3.5 million-barrel increase. Despite mixed results in fuel inventories, oil prices climbed over 1% with WTI up $1.32 per barrel and Brent up $0.93. You can see the up-to-the-minute numbers here.