RIYADH: Oil prices rose on Tuesday as markets weighed supply cuts for August by top exporters Saudi Arabia and Russia against an uncertain global economic outlook.
Brent crude futures climbed 34 cents, or 0.46 percent, at $74.99 a barrel by 9:18 a.m. Saudi time. US West Texas Intermediate crude was at $70.12 a barrel, up by 33 cents, or 0.47 percent.
Saudi Arabia on Monday said it would extend its voluntary output cut of 1 million barrels per day to August.
Meanwhile, Russia will also reduce its oil exports by 500,000 bpd in August, Deputy Prime Minister Alexander Novak said.
OPEC+ strives for oil market stability: UAE minister
The Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, have always strived for oil market stability by ensuring a balance in fundamentals between supply and demand, said UAE’s Minister of Energy and Infrastructure Suhail bin Mohammed Al-Mazrouei.
In a statement to the state news agency WAM, Al-Mazrouei said that OPEC’s technical team is constantly monitoring global oil market variables and presenting its recommendations to the ministerial committee to make appropriate decisions, which will ultimately improve market stability and drive sustainable growth.
Uganda seeks new funding for planned oil refinery
Uganda is seeking new funding for its planned crude oil refinery after negotiations with a consortium that included a unit of US firm General Electric lapsed over its failure to mobilize financing in time, its Energy and Mining Ministry said.
The 60,000 bpd refinery would cost an estimated $3 billion to $4 billion and help the East African country process the crude reserves it hopes to start producing in 2025.
In a statement late on Monday, the ministry said the government and the consortium had made progress on the project, including concluding refinery configuration, front-end engineering and design and environmental impact assessment.
However, the ministry added, there were still “a number of outstanding aspects, including mobilization of financing for the project.”
“The government of Uganda is now open to receiving offers from public sector capital providers to participate in this nationally and regionally strategic project,” the ministry said.
The Albertine Graben Energy Consortium members include Nuovo Pignone International SRL, a GE subsidiary in Italy, YAATRA Africa and Lionworks Group Ltd., both from Mauritius and Saipem SpA, also from Italy.
In 2018, the government and the consortium signed a project framework agreement by which the latter committed to designing, financing and developing the refinery project.
That agreement expired on June 30 without the consortium securing the necessary financing for the project.
(With input from Reuters)
