In this week's Market Movers Europe with James Burgess:
- Russia, Red Sea attacks in focus
- Gas on EU energy ministerial meeting agenda
- Solar’s price-destructive power grows
- Green hydrogen projects continue to face delays
This week, security of supply remains a major focus for oil markets amid heightened geopolitical tensions. Russia is contending with attacks on its infrastructure, and is also implementing a ban on gasoline exports.
The sinking of bulk carrier Rubymar by a Houthi strike in the Red Sea has raised concerns about the knock-on effects on global tanker traffic.
In the UK, the focus is on Wednesday’s Spring Budget, with North Sea oil and gas taxes in the spotlight for the industry ahead of a general election later this year.
In gas, EU energy ministers meet today to discuss several issues, including a Commission proposal to maintain voluntary measures to reduce gas demand by 15%.
Ministers have also been urged to discuss Germany’s controversial gas neutrality charge, which increases the cost of using the German gas grid for flow to neighboring countries.
In power, traders are watching the growing influence of solar power on markets as daylight hours lengthen.
Spain has seen front-month power prices collapse in recent days with wind, solar and hydro covering three-quarters of national demand.
Traders remain wary of solar’s price-destructive power after record installations last year.
In green hydrogen, electrolyzer manufacturers reporting full year results for 2023 continue to flag delays to final investment decisions for projects.
Revenues are growing, which is a sign that some projects are gaining momentum. But obstacles remain, as developers grapple with higher interest rates, supply chain issues and scaling up.
I’m James Burgess, thank you for kicking off your Monday with S&P Global Commodity Insights.