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CPMZ Breaks Ground on Mozambique-Zimbabwe Pipeline Expansion

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Southern African pipeline operator CPMZ launched a major expansion project on Wednesday to boost the capacity of its Mozambique-Zimbabwe fuel corridor by nearly two-thirds to 5 million cubic meters annually by 2027, the company stated in a social media post.

The initiative will increase annual capacity from 3 million to 5 million cubic meters by the end of 2027, driven by the construction of two new pumping stations in Nhamatanda and Messica.

This expansion aims to strengthen the Beira-Harare energy corridor, supporting reliable diesel, petrol, and jet fuel supplies for Mozambique, Zimbabwe, and the wider regional hinterland.

CPMZ reported that this phase is part of a broader strategy to eventually scale throughput toward 12 million cubic meters annually through a larger diameter pipeline.

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US Oil Update: Crude Eases As US-Iran Strikes, Ship Attacks Threaten Supplies

Crude oil futures were little changed in after-hours trading on Wednesday as renewed US-Iran military strikes and attacks on tankers in the Strait of Hormuz heightened fears of further disruptions to global crude supplies.Front-month West Texas Intermediate crude eased by 0.5% to $90.63 per barrel, while Brent futures were up 0.7% to $95.32/bbl.Soojin Kim, research analyst at MUFG, said that crude is now more than 30% higher since the Middle East conflict began in February, with refined-product markets facing even greater tightness.US commercial crude oil inventories decreased by 4.5 million barrels to 424.5 mmbbls in the week ended Aug. 28, the Energy Information Administration said in its weekly report released Wednesday.Crude inventories were about 1% above the five-year average for this time of year, the EIA said. The draw is significantly above Investing.com's estimate of a 400,000-barrel draw for the week ended Aug 28.Hostilities in the Middle East remain elevated, with President Trump threatening more attacks if Iran responded to additional overnight strikes on Iranian targets by the US military on Tuesday.Trump floated renaming the Hormuz after himself on Wednesday, but it is not yet clear how the US President would attempt to implement a name change in the strait.The US Central Command said in a post on X that the strikes "follow recent attempted attacks by the IRGC against commercial shipping in the Strait of Hormuz and against American service members."On Wednesday, Centcom said that the US military has redirected 86 commercial vessels, disabled three and boarded two to ensure compliance as of Sept. 2.Iran's Islamic Revolutionary Guard Corps, in response to the latest strikes, attacked US military bases in Kuwait, Jordan, Bahrain, Kuwait and the UAE, and said its aim was now to drive American forces out of the Middle East.On Wednesday, the IRGC said that two tankers were disabled after being struck by mines in the Hormuz, forcing their crews to abandon the vessels, multiple media reports said.The IRGC Navy said it had already warned ships about the risks of navigating the mined channel, while signaling further action against vessels that ignore the warning.Iran's Persian Gulf Strait Authority added a further 11 ships to its blacklist on Wednesday, barring the vessels from transiting through the Hormuz for "non-compliance."PGSA, the authority set up by Iran to manage the strait, now prohibits 57 vessels from transiting the strategic waterway.Saxo Bank strategists said that disruption fears remain the key price driver as commercial vessel traffic through the Hormuz remains curtailed.On the supply front, US Treasury Secretary Scott Bessent said 17 million barrels of crude exited the Strait of Hormuz on Monday, while claiming that Iran doesn't control the strait.US Energy Secretary Chris Wright reiterated that figure, adding that exports are averaging about 8 million b/d, with 4 to 5 million b/d bypassing the strait via pipelines."When you factor in bypass volumes, it suggests Persian Gulf oil flows are above pre-war levels," ING strategists said in a note on Wednesday, but said that these numbers are uncertain.

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Oil & Energy

Update: US Energy Secretary Says 17 Million Barrels Crossed Hormuz Monday, Bessent Signals Iran Isolation

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