RIYADH: Oil prices held steady on Wednesday as concerns about weaker demand offset industry data that showed a larger-than-expected drawdown in US crude stockpiles.
Brent crude futures were at $104.35 a barrel at 0250 GMT, down 5 cents, or 0.05 percent. US West Texas Intermediate crude rose 9 cents, or 0.1 percent, to $95.07 a barrel. WTI had climbed nearly $1 earlier in the session.
Crude spill hits environmentally-sensitive area in Venezuela
Crude oil spilling from one of state-run PDVSA’s joint ventures has hit an environmentally sensitive area in Venezuela’s eastern region, three sources close to the operations told Reuters on Tuesday.
Oil spills and gas leaks have become frequent in recent years in Venezuela, where lack of investment and delayed maintenance have contributed to the deterioration of PDVSA’s aging energy infrastructure.
The leak came from an oil well at Platform G, one of the sources said, referring to infrastructure located at the Pedernales shallow-water field in eastern Venezuela. It was first discovered on Saturday, according to the sources.
The platform belongs to PDVSA-controlled joint venture Petrowarao. Anglo-French oil company Perenco has a 40 percent stake in the largely idled project.
“That area is dilapidated and abandoned. It has old rusty wells that still have crude trapped inside,” the source said.
Exxon accelerates production in Guyana
Exxon Mobil Corp. on Tuesday said it has made two new oil discoveries offshore Guyana and that it has already exceeded, in July, its 2022 production target for the South American country.
The announcements are part of Exxon’s efforts to accelerate production in Guyana and to invest in long-term megaprojects that offer lower costs and lower carbon emissions per barrel. A group led by Exxon started production in the tiny nation of 750,000 people in 2019 and currently controls all output in Guyana.
“Exxon and its partners continue to accelerate exploration, development and production activities for the benefit of all stakeholders, including the people of Guyana,” Liam Mallon, head of Exxon’s upstream company said in a statement.
The US major said it is already producing 340,000 barrels of oil equivalent per day in Guyana — a target that until months ago was set for the entire year — leaving room for further output expansion in the coming months.
(With input from Reuters)