In this week's highlights: Oil market attention is on the long-term outlook following Saudi Arabia's move to unilaterally slash output; it's Abu Dhabi sustainability week; Nord Stream 2 works resume; and the reliability of French nuclear generation remains in focus.
- Long-term recovery outlook in spotlight
- Abu Dhabi Sustainability Week
- Nord Stream 2 getting back to work
- French nuclear maintenance looms
Also on Market Movers:
Biden brings sharp change in energy policy, traders eye pre-inauguration protests
In this week's highlights: Oil market attention is on the long-term outlook following Saudi Arabia's move to unilaterally slash output; it's Abu Dhabi sustainability week; and the reliability of French nuclear generation remains in focus.
But first, in oil, all eyes are on the pace of the pandemic recovery and the easing of OPEC+ production cuts, after Saudi Arabia's decision to unilaterally cut 1 million b/d of output helped support prices at the start of the year.
The International Energy Agency gives its assessment in its monthly oil market report on Tuesday and we'll have comments the same day from a host of top officials at the Global Energy Forum organized by the Washington-based Atlantic Council.
Speakers include IEA Executive Director Fatih Birol, OPEC Secretary General Mohammad Barkindo, the chairman of Libya's National Oil Company Mustafa Sanalla, and the UK's Secretary of State for Business, Energy and Industrial Strategy Kwasi Kwarteng, whose country hosts the United Nations' COP26 conference in November.
Getting underway the same day and addressing the long-term outlook for oil and energy is Abu Dhabi Sustainability Week.
UAE Minister of Industry and Advanced Technology Sultan Ahmed Al Jaber is the top speaker, and likely to be discussing his country's plans both to raise oil output, and attempts to mitigate climate change.
In European gas, the market will be monitoring the expected restart of work to lay the Nord Stream 2 gas pipeline to Germany in Danish waters.
Nord Stream 2 is crucial for Russia's Gazprom to be able to scale back the use of Ukrainian gas transit and avoid the need to book expensive Ukrainian capacity on a short-term basis.
As can be seen near the top of the graph, a little over 150 km of the pipeline remains to be laid in German and Danish waters, with the larger section required off the Danish island of Bornholm.
The threat of US sanctions had led to work being halted in December 2019, and there is still concern that those involved in laying the Danish section could fall foul of sanctions.
And that takes us to our social media question for the week: Will Nord Stream 2 be completed before the threat of further US sanctions derails the project again? Tweet us your thoughts using the hashtag #PlattsMM.
The dependability of French nuclear generation remains in focus this week as European power markets grapple with raised winter demand.
Some 11 French reactors are nearing the start of annual maintenance this month, with the risk of tighter margins if temperatures drop again.
The forecast has turned milder, but sharp swings in wind production can still test system flexibility, particularly in the UK where nuclear availability is currently poor.
Nuclear remains top of Europe's generation mix, despite a massive drop in 2020 as seen on your screen. Progressive closures in Germany and Belgium this and next year will further undermine its status, accelerating the need for new flexibility.
For more on all the issues affecting commodity markets from wherever you are, make sure to check out Platts LIVE at the address displayed on your screen.
Thanks for kicking off your Monday with us and have a great week ahead!