RIYADH: Oil dropped for a second day on Wednesday as an industry report pointed to ample supplies in the US and expectations of further interest rate hikes sparked concern over fuel demand and the economic outlook. Brent crude futures fell 62 cents, or 0.72 percent, to $84.96 a barrel at 03.15 p.m. Saudi time, while US West Texas Intermediate crude dropped 66 cents, or 0.83 percent to $78.40. US crude inventories rose by about 10.5 million barrels in the week ended Feb. 10, according to market sources citing American Petroleum Institute figures on Tuesday. Devon Energy profit misses as output hit by winter storm Shale oil producer Devon Energy on Tuesday missed Wall Street estimates for fourth-quarter profit due to a hit to production from severe cold weather in the US during the period, as well as higher expenses on personnel. Devon had said in January that it estimated its fourth-quarter production to be 2 percent lower, with operations at its Williston basin in North Dakota affected the most. For 2023, the company forecast production in the range of 643,000 to 663,000 barrels of oil equivalent per day. The company’s output averaged 636,000 boepd in the October-December quarter. Devon said its expenses increased 1 percent in 2022, driven by higher personnel costs in the reported quarter. It also said that it expects total capital investment between $3.6 billion and $3.8 billion in 2023 with higher spending in the first half due to a temporary fourth frac crew in the Delaware Basin. The company also hiked its fixed quarterly dividend by 11 percent. Excluding hedges, Devon said its realized price slightly rose to $53.66 from $53.12 for the fourth quarter. The Oklahoma City-based company posted adjusted earnings of $1.66 per share for the quarter ended Dec. 31, compared with average analysts’ estimate of $1.75 per share, according to Refinitiv data. Guyana to complete new oil contract model by Q2 as auction looms Guyana expects to finalize a new oil production-sharing agreement model on time for an auction that will collect bids through mid-April, the country’s vice president told an energy conference on Tuesday. The South American country has emerged as one of the hottest offshore areas in decades with as much as 25 billion barrels of oil and gas. The country for months has promised to deliver new contract terms, but has been repeatedly delayed. Oil ministers and executives are in Guyana this week to learn more about 14 oil and gas exploration blocks on offer. Vice President Bharrat Jagdeo told attendees a new contract model would be available in late March or early in the second quarter. “We want multiple numbers of investment groups coming in here because then you can start the exploration activities simultaneously,” Jagdeo said. The country is also considering allocating extra blocks to countries including Brazil, Qatar and India through bilateral agreements, he said. Guyana has been in talks with the UAE and the UK, President Irfaan Ali said last month in India. (With input from Reuters)