In this week's Market Movers Europe with Kelly Norways:
- Energy security, transition to dominate CERAWeek
- EC to discuss joint gas purchasing
- EU to unveil Critical Raw Materials Act
- Panamax grain season shipping negotiations
- Power market braces for cold, dry weather
After London last week, it’s Houston’s turn to host top officials and executives from the energy industry as CERAWeek by S&P Global gets underway.
The event will open against a backdrop of great uncertainty for the industry, not least in oil markets where interest rates, the dollar, China’s reopening, and Russian supply remain at the forefront of immediate considerations.
While US crude oil inventories have built in recent days, strong export levels to an oil-thirsty Europe continue to weigh on the global supply balance.
In gas markets, the EU is preparing to finalize its first joint gas purchases this week. The European Commission will host talks with associations representing major industrial gas consumers on the continent, alongside international gas suppliers.
So far 22 EU member states have expressed interest in aggregating more than 17 Bcm of gas demand over the next three years.
The EU is also due to unveil its Critical Raw Materials Act on Wednesday.
European Commission Vice President Maros Sefcovic has described the act as a gamechanger in advancing the EU’s battery production and energy transition.
As peak grain season approaches, negotiations between ship owners and charterers are expected to get lively. Panamaxes and Kamsarmaxes in the Atlantic have seen solid, back-to-back gains lately, driven by bullish moves in the Freight Forward Agreements.
And the European power market is hoping for better wind power performance in March after a weak February in which generation fell by a third on the year.
However, an upcoming cold and dry weather spell is unlikely to improve hydro stocks, which are already low after an unusually dry winter.
I’m Kelly Norways, thank you for kicking off your Monday with S&P Global Commodity Insights.