In this week's Market Movers Europe with Roudy Dirani:
- Prices rise on Red Sea escalation
- Delays in polyester delivery amid Red Sea tensions
- Cold snap set to last for another week
- Commission to launch UDB Jan. 15
In oil, fears of a worsening situation in the Red sea have pushed up prices, after the US and its allies stepped up military action against Yemen-based Houthi rebels.
The Houthi attacks have forced thousands of vessels to divert around South Africa’s Cape of Good Hope, at great extra cost.
Taking a broader view of the markets, OPEC and the International Energy Agency will publish their monthly reports on Wednesday and Thursday respectively.
In chemicals, European polymer markets are also feeling the effects of the Red Sea disruption.
Material from the Middle East and Asia is expected to be delayed and see price hikes amid increasing freight and container rates.
In power, the sharp cold snap in northwest Europe looks set to continue lifting demand into mid-January.
Prompt prices have risen 20% since the start of the year but are still a fraction of the spikes seen during 2022.
The European Commission will launch the Union Database for Biofuels on Jan. 15, refining the reporting of European biofuels sustainability.
The database will centralize the transactions of renewable fuels at every level in an effort to combat sustainability fraud to the EU.
I’m Roudy Dirani, thank you for kicking off your Monday with S&P Global Commodity Insights.