In this week's Market Movers Europe with Masrur Choudhury:
- Limited hopes for significant COP27 progress
- Oil market fundamentals strengthening
- Gas market calm ahead of winter
- Black Sea Grain Initiative extension?
The UN Climate Change Conference in Egypt wraps up at the end of the week, with little hope for significant progress on emissions reductions.
Large-scale renewables and hydrogen project announcements were made on the sidelines, and more could emerge on Tuesday as the agenda focuses on energy.
However, voluntary carbon market methodology decisions have been postponed to 2023, and prices have fallen as the market awaits clarity.
Oil prices have picked up on hopes of a slowdown in US interest rate rises and a weaker dollar, with fundamentals lifted by impending Russian oil curbs.
The UK's latest fiscal plan on Thursday will be scrutinized for its impact on North Sea producers.
And we have monthly reports from OPEC and the IEA, on Monday and Tuesday respectively.
Europe's gas storage facilities are now filled to historically high levels of over 95% of capacity.
Mild weather has allowed member states to limit withdrawals and continue injections into storage.
However, concerns remain over stock filling next summer, with the EC warning of a potential 30 Bcm supply shortfall.
In grains and oilseeds markets, we will be watching to see whether an extension of the Black Sea Grain Initiative can be agreed.
With the deal expiring on Saturday, talks between the UN and Russia – which briefly suspended its participation at the end of last month – were being held in Geneva at the end of last week.
I'm Masrur Choudhury, thank you for kicking off your Monday with S&P Global Commodity Insights