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Oil Updates — Crude climbs; Cenovus to restart Atlantic Canada oilfield undertaking; Oil refineries scarcity haunts Africa
RIYADH: Oil costs gained barely on Wednesday after EU leaders agreed to a partial and phased ban on Russian oil and as China ended its COVID-19 lockdown in Shanghai.
Brent crude for August supply was up 28 cents, or 0.2 %, at $115.88 a barrel at 0338 GMT. The contract settled down 1.7 % on Tuesday.
The front-month contract for July supply expired on Tuesday at $122.84 a barrel, up 1 %.
US West Texas Intermediate crude rose 30 cents, or 0.3 %, to $114.97 a barrel.
Cenovus to renew Atlantic Canada oilfield undertaking in 2023
Cenovus Vitality and its companions mentioned on Tuesday they’ll restart the West White Rose oilfield undertaking off the coast of Atlantic Canada in 2023, greater than two years after pausing it because the COVID-19 pandemic battered oil costs.
Main development actions on the West White Rose undertaking, which is anticipated so as to add 14 years of manufacturing to the White Rose oilfield, had been suspended in April 2020. Since then oil costs have recovered and surged to a 13-year excessive in March.
The choice comes simply weeks after the Canadian authorities accredited Equinor ASA’s Bay du Nord deepwater undertaking, additionally off the coast of Newfoundland and Labrador, and a significant enhance to the economic system of the japanese province.
“With the undertaking about 65 % full, mixed with the work finished over the previous 16 months to agency up price estimates and rework the undertaking plan, we’re assured in our determination to restart this undertaking in 2023,” Cenovus CEO Alex Pourbaix mentioned in an announcement.
The Calgary-based firm mentioned the primary oil from the platform is anticipated within the first half of 2026. Peak manufacturing is anticipated to be about 80,000 barrels per day by the tip of 2029.
Scarcity of oil refineries haunts Africa as gasoline costs rocket
A scarcity of oil refineries throughout sub-Saharan Africa coupled with hovering crude costs due to the conflict in Ukraine has left nations dangerously in need of gasoline provides, disrupting airways and inflicting queues at filling stations.
The surge in costs is available in tandem with a spike in the price of meals after Russia despatched troops into Ukraine, hitting tens of hundreds of thousands of individuals already residing in precarious situations, in addition to authorities and help company budgets.
Refineries throughout sub-Saharan Africa mixed can course of 1.36 million barrels of oil a day, in principle, however with many out of motion, solely 30 % of that capability was used final yr, in response to unbiased consultancy CITAC.
Refineries in Cameroon, Ghana and Senegal are shut, as are 4 in South Africa. Africa’s greatest oil producer, Nigeria, pumps over 1.3 million barrels a day, however the two privately-owned vegetation nonetheless working there can solely course of 1 % of that.
Gas shortages are additionally hitting Western nations, however the impression in Africa is anticipated to be lengthy lasting as governments and firms are typically much less in a position to afford the sky-high price of imported gasoline, or provide you with the hundreds of thousands of {dollars} wanted to get refineries working once more at full tilt.
(With enter from Reuters)
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