In this week's Market Movers Europe with Harry Clyne, Associate Editor for EMEA Agriculture, looking closely at vegetable oils:
- Russia glitches, strong oil demand in spotlight
- Europe anticipates renewed winter energy costs
- Russia deliveries remain limited over turbine deadlock
This week, oil demand is forecast to be on the rise, with industries switching from expensive gas to oil for energy and heat, while the Middle East is increasing oil use in power generation over the summer.
Russia remains in the spotlight after financial sanctions briefly halted pipeline flows to Central Europe.
Moscow is redirecting exports via the Far East, where loadings at the port of Nakhodka are hitting multi-year highs.
UK regulator Ofgem will reveal the price cap for energy bills, with UK winter power up 67% since the start of July, and Great Britain and Italy now competing for scarce French winter imports.
In Germany, authorities will reveal the new gas levy consumers will pay from October to cover the higher purchase cost due to the shortfall of Russian gas supply.
Water levels in the Rhine and French reactor maintenance are also in focus, with traders awaiting the second stress test on Germany's nuclear phaseout this winter.
The European gas market remains concerned over Russian flows via the Nord Stream pipeline, and will be watching this week for any movement of the key turbine still stuck in Germany after maintenance.
Nord Stream deliveries are currently running at just 20% capacity, and Moscow still maintains that it cannot take delivery of the turbine due to risk of sanctions.
I'm Harry Clyne, thank you for kicking off your Monday with S&P Global Commodity Insights