In this week's Market Movers Europe with James Burgess:
- China propelling tighter oil market outlook
- ICE launches new London-based TTF gas market
- UK to hold four-year ahead power capacity auction
This week, the oil market is heating up as China returns to the global market, and an announced Russian output cut also points to a tighter market. One year on, Russia's invasion of Ukraine has shifted global oil trade flows.
But the latest US data shows rising crude oil inventories, and lower refinery runs.
In gas, exchange operator ICE is set to launch a new market for TTF gas futures and options contracts on its London-based exchange on Monday.
It is designed to offer market participants "optionality" in the event the EU's new market correction mechanism is at risk of being triggered.
Prices are well below the level needed to activate the mechanism. The London exchange offers an "insurance option" if the EU cap prevents trade and adequate risk management, ICE said.
In power, the UK is due to open its four-year ahead capacity market auction on Tuesday, with a target to sign up almost 44 GW.
The descending clock auction for 2026/2027 is expected to clear at a firm price, reflecting increased tightness in a post-coal UK market.
Add to this the prospect of a nuclear gap opening up as old reactors close ahead of the completion of Hinkley Point C, and outcomes from these annual sales could be increasingly expensive.
I'm James Burgess, thank you for kicking off your Monday with S&P Global Commodity Insights