In this week's Market Movers Europe with Mujidah Yahaya:
- Threats to fuels supply in focus after attacks in Russia
- Chemicals market participants brace for Feb contract prices
- French power workers plan 24-hour strike
In oil, an attack on a Trafigura naphtha tanker in the Middle East and growing concerns that an escalation to the conflict in Gaza will hit flows is overshadowing markets. The attack coincides with a rise in suspected Ukrainian attacks on Russian infrastructure in the Baltic and Black Sea that has been impacting product markets.
Meanwhile, industry leaders are gathering Monday for the Baker Hughes Annual Meeting in Florence, Italy.
And the 2023 corporate results season kicks off, with Shell and Austria’s OMV both reporting on Thursday.
In petrochemicals, value chain participants will closely monitor industry contract price settlements in ethylene and propylene markets for February.
Settlements are expected on Thursday, with limited change in average pricing levels for key feedstock naphtha likely to weigh against tighter supply of material from cracker outages in negotiations.
Propylene market players said they expect tight conditions to continue into February, exacerbated by inland and coastal logistical difficulties.
And in European power, a 24-hour strike by French utility workers starting tonight and a drop in wind power supply could lift prices after last week’s mild and windy weather. Overall, improved reactor availability is a key reason for lower risk premiums, with the quarter-ahead contract trading near a three-year low.
I’m Mujidah Yahaya, thank you for kicking off your Monday with S&P Global Commodity Insights.