In this week's Market Movers Europe with Cresida Rodrigues:
- IEA-OPEC Forum discusses outlook
- WAF-East VLCC rates spike on tonnage shortage
- UK readies for Winter capacity market auction
- Nitrate fertilizer demand weak on protests and weather
This week, heads of OPEC and the International Energy Agency meet for an oil symposium in Riyadh on Wednesday to discuss the contrasting views of both organizations on the energy outlook. The IEA has taken a relatively relaxed view of the current oil supply and has raised environmental objections to major new projects.
The EGYPES energy forum takes place in Cairo on Monday and Tuesday. Speakers from across the industry will be discussing the region’s growing role in gas supply, particularly for Europe, against a fraught geopolitical backdrop.
Market participants will also be closely monitoring the Saudi cargo list of crude shipments available, which is due to be released this week. The list could lend further support to VLCC rates in both the Persian Gulf and West Africa.
Freight rates for VLCC voyages from West Africa to the Far East have risen by almost 40% since the beginning of the month amid an acute tonnage crunch and under-the-surface fixture negotiations.
In power, UK generators are set to bid for capacity market contracts on Tuesday as the government seeks to secure plant availability for next winter.
The target capacity is significantly higher than in last year’s auction, when it cleared at a healthy 60 pounds per kilowatt.
Finally, demand for nitrate fertilizers remains weak ahead of the spring application season.
Farmers continue to hold protests against high taxes, strict regulations, and unfair competition from abroad, contributing to the observed lower demand for nitrates in Europe, particularly during periods of inclement weather for farming activities.
I’m Cresida Rodrigues, thank you for kicking off your Monday with S&P Global Commodity Insights.