In this week’s Market Movers Americas, presented by Lassana Fisiru:
• Second-quarter earnings give clues to oil demand
• Oil markets watch for Chinese stimulus package
• USEA Virtual Press Briefing: Too Darn Hot
• Container rates to rise on capacity contraction
This week, oil markets will be watching second-quarter earnings for indications of global oil demand growth. Refiner Valero Energy said last week that it expects refined products inventories to remain tight going forward as global demand recovers from pre-pandemic levels. Canadian oil producer Cenovus said it sees Asian refiners leading demand growth for its heavy barrels in global markets.
Oil markets are also looking out for a potential stimulus package in China, which is expected to lead second-half 2023 demand growth. China's housing minister has called for measures to revive the country's struggling property market, and the latest calls for policy support follow recent pledges by Chinese authorities for additional stimulus.
The United States Energy Association plans to hold a press briefing to discuss the state of the nation’s utilities. Power demand has surged to record levels amid triple-digit high temperatures across several states, which has produced periodic price spikes, especially as solar output falls at night in the Southwest US.
Rates for containerized imports to North America from North Asia are poised to rise as carriers expect a General Rate Increase to stick. A backlog at the port of Vancouver following labor strikes at British Colombia ports and numerous blanked sailings is sending bullish signals to the Americas container markets, where freight has been under pressure so far this year amid weak consumer demand.
I’m Lassana Fisiru. Thanks for kicking off your Monday with S&P Global Commodity Insights.