In this week's Market Movers, presented by Binish Azhar:
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Crude futures weigh potential supply impact of Middle East tensions
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US Senate committee to hold hearing on carbon capture projects
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US steel scrap sellers aim for Nov. rebound
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US gas trade association to provide winter outlook
This week,
Crude prices are poised to move higher should a heavily telegraphed Israeli ground offensive in Gaza draw a response from Iran or other regional powers. As the market weighs risk, economic growth concerns have capped price rallies. The US Federal Reserve will meet on Wednesday, and US oil market participants believe a stronger-than-expected third-quarter GDP print and stubbornly high inflation could make the Fed maintain a more hawkish stance, which could limit near-term growth or risk pushing the economy into recession.
A US Senate committee will hold a hearing on Thursday to examine challenges in regulatory approvals for carbon capture and storage projects. The technologies require extensive CO2 pipeline and storage infrastructure, which developers are struggling to get permitted. Permitting pushbacks have resulted in a string of CCS pipeline projects being cancelled or delayed.
In metals, the US ferrous scrap market will bring November monthly trading into focus, as tighter supply and rising finished steel prices will have scrap dealers hoping for an increase in November. Prices for Midwest hot-rolled coil rose last week, following news that Ford and the United Auto Workers union had reached a tentative agreement to end six weeks of labor strikes.
Finally, the US American Gas Association will release its outlook for winter 2023-24 on Monday, providing staff’s observations on market fundamentals and industry preparedness for the upcoming winter heating season.
I’m Binish Azhar. Thanks for kicking off your Monday with S&P Global Commodity Insights.