In this week's Market Movers Europe with Sakshi Jalan:
- Potential supply disruption strengthens oil prices
- Ukraine gas storage under threat
- Metals results season kicks off with mining companies
This week, oil prices are hovering around the $90/b mark amid market fears over potential supply disruptions as a result of the conflict in the Middle East.
In a significant escalation, Iran launched a barrage of drones at Israel on Saturday, raising regional concerns for the oil market.
This attack comes after Iran earlier impounded an Israeli-linked cargo vessel near the Strait of Hormuz. The Middle East, which supplies 40% of global oil exports, is now facing heightened tensions.
Meanwhile, floods in southern Russia and Kazakhstan have displaced tens of thousands of residents and shut down the Orsk refinery, just when Russian refiners are grappling with the threat of Ukrainian drone strikes.
Turning to gas, the market will continue to digest the fallout from the most recent Russian attacks on Ukrainian underground gas storage sites.
Ukraine is urging European traders to make more use of the country's spare gas storage capacity over the summer, but the recent attacks could dampen any appetite for this.
In metals and mining, investors await financial updates from leading mining companies.
Rio Tinto starts off on Tuesday, followed by Antofagasta on Wednesday. Thursday will see BHP and Elkem sharing their quarterly results.
These announcements will provide crucial insights into the industry's performance and market trends.
I’m Sakshi Jalan, thank you for kicking off your Monday with S&P Global Commodity Insights.