Saudi Aramco and Sempra Energy said Wednesday they signed a 20-year deal to buy LNG from a Sembra unit. The two companies are finalizing their investment in a 25% stake in the first phase of the Port Arthur LNG project.
The two parties said in a statement that the sale and purchase agreement involvesfive million tons per year of natural gas coming from the first phase of thePort Arthur LNG project, which is under development.
Oil prices fell today, after industrial data showed an increase in the UScrude inventories, and Saudi Arabia vowed to maintain a balance of markets.
However, analysts said oil markets were still in short supply under OPEC-led production cuts and the escalating political tensions in the Middle East. Brent crude futures were down by 39 cents, or 0.5%, at $71.79 a barrel, and Crude Oil WTI Futures for July delivery fell 59 cents, or 0.9%, at $62.54 dollars a barrel.
While the June contract ended Tuesday at $ 62.99 a barrel, down by 11 cents. The US Petroleum Institute said yesterday: "US crude inventories rose 2.4 million barrels last week to 480.2 million barrels, compared with analysts' expectations of a 599,000 barrel decline."
The US Energy Information Administration (EIA) will release official statements on oil inventories later on Wednesday, coinciding with Saudi Arabia's pledge to maintain the balance and sustainability of the oil market.
In addition to the fundamentals of the market, oil traders are watching tensions between the United States and Iran, which have escalated since Trump imposed sanctions on Iranian oil exports in a bid to stifle Iran's economy and force it to halt its nuclear program.
