In this Market Movers Asia with Ribhu Ranjan:
- Gas markets monitor workers’ strikes in Australia
- Asian refiners may nominate full term volumes for Oct-loading Saudi crude
- New Zealand carbon price set to rise
- Australian wheat output, exports seen falling
- Asian thermal coal demand seen picking
This week, global gas markets will be closely watching the workers’ strike situation in Australia, which has resulted in volatile trading lately.
Industrial action at Chevron's Gorgon and Wheatstone LNG facilities began last Friday after the company failed to reach an agreement with the unions.
The LNG market will be watching whether escalating industrial action will impact the supply from the facilities that feed buyers in Japan, China, South Korea and Taiwan.
In oil, Asian refiners are looking to nominate full term volumes for October-loading Saudi crude following a smaller-than-expected rise in Aramco's official selling prices.
Aramco recently raised the Asia-bound OSP differentials for its Arab Light, Medium and Heavy grades.
The New Zealand carbon allowance price is expected to rise in the coming days after the third quarterly auction failed on Sept. 6 due to lower bids, setting the stage for tight spot supply next year.
In agriculture, Australia’s upcoming wheat harvest is in focus amid concerns of a potential El Nino, which may result in dry weather conditions in the country. Australia’s wheat production for 2023-24 is estimated at 25.4 million mt, down 36% on the year.
The fall in output is also likely to lower the country’s wheat exports by over 28% from last year.
Finally, the Asian thermal coal market is likely to see increased demand from Indian power and steel sectors, as well as from China, after Chinese domestic coal prices rose.
I’m Ribhu Ranjan, thank you for kicking off your Monday with S&P Global Commodity Insights.