이 목록에서
Natural Gas | Oil | Metals | Petrochemicals

Market Movers Europe, Mar 4-8: Oil firms expected to issue full-year results

Energy | Oil

Platts Market Data – Oil

Natural Gas | NGLs

Henry Hub 가스 가격 평가

보기: Market Movers Europe, Mar 4-8: Oil firms expected to issue full-year results

  • 주요 내용
  • Leon Izbicki
  • 원자재
  • Natural Gas Oil Metals Petrochemicals
  • 길이
  • 04:01

In this week's Market Movers, with Leon Izbicki: Full-year results beckon for firms across commodity markets, while the European gas markets will be fully focused on the prospect of potential LNG imports.

First off, earnings season continues this week for the oil markets, and Monday sees Russia's Lukoil release its 2018 annual report.

And more data on OPEC's output cuts will be out as S&P Global Platts releases its monthly survey on compliance with the output limit.

Our social media question for the week is: Will pressure from the US prevent further OPEC production cuts in 2019? You can let us know your thoughts using the hashtag #PlattsMM.

Staying with oil, traders are anticipating an increased flow of jet fuel cargoes into Europe.

Earnings season is also continuing over in the steel market. On Wednesday, attention will focus on Metinvest's financial results announcement for 2018.

Meanwhile, in natural gas, Europe could be set for more LNG imports in the coming months, as key European gas benchmark TTF has reached near parity with the JKM Asian LNG price.

Finally, in petrochemicals, the market will be keeping an eye on global tightness in acrylonitrile, which is used to make synthetic rubber and fibers.

Join our conversations on Twitter - use #PlattsMM and connect with us.

Turning tides: The future of fuel oil after IMO 2020

This report provides a thorough introduction to the IMO's sulfur cap on marine fuel, its impact on markets and what to expect from the new regulatory framework.

Download the report
전체 원고 보기

In this week's highlights: full-year results beckon for firms across commodity markets, while the European gas markets will be fully focused on the prospect of potential LNG imports.

But first to oil markets, where earnings season continues this week, and Monday sees Russia's Lukoil release its 2018 annual report.

With Russia a key player in the OPEC/non-OPEC alliance, the market will want to analyze to what extent OPEC-led production cuts are affecting Lukoil's outlook.

More data on those OPEC cuts will come out this week, as S&P Global Platts releases its monthly survey on compliance with the output limit. The data will provide an idea of the extent to which countries are keeping to prescribed output levels. Last week, US president Donald Trump took to Twitter again to criticize rising oil prices, asking OPEC members to "relax and take it easy."

That brings us to this week's social media question: Will pressure from the US prevent further OPEC production cuts in 2019? Like the US president, you can also take to Twitter, and let us know your thoughts using the hashtag #PlattsMM.

Staying in the oil markets, traders are anticipating an increased flow of jet fuel cargoes into Europe. This expectation has already been leading to weakness in the market for aviation fuel.

Arrivals from the Arab Gulf and West Coast of India are currently being pegged at 1.5 million metric tons for March, according to Platts trade flow software cFlow. That is a year-on-year increase of 50%.

The front- and second-month jet fuel differential swaps to the corresponding ICE low sulfur gasoil futures hit fresh one-year lows at the end of last week.

Earnings season is also continuing over in the steel market.

On Wednesday attention will focus on Metinvest's financial results announcement for 2018.

It comes after a year of challenges for the major Ukrainian integrated steelmaker. Last year, Metinvest had to contend with tensions with Russia in the Azov Sea, competition from eastern Ukrainian mills seized by pro-Russian authorities, as well as trade barriers, particularly in the EU, its largest market.

Switching our focus from steel to gas, Europe could be set for more LNG imports in the coming months, as key European gas benchmark TTF has reached near parity with the JKM Asian LNG price.

As you can see from our chart, the JKM spot Asian LNG price has been falling in recent weeks, driven by a mild winter season and healthy stocks in Asia.

While European gas prices have also been on a bear run due to strong LNG imports, robust stocks and a milder weather outlook, the spread to the JKM marker still narrowed. The Asian premium over the UK's NBP hub was just 10 cents per million BTUs last week.

That means spot LNG cargoes from the Atlantic basin have an even greater price incentive for delivery into Europe, rather than Asia.

Lastly, in petrochemicals, the market will be keeping an eye on global tightness in acrylonitrile, which is used to make synthetic rubber and fibers.

Chemicals producer Ineos recently declared force majeure on supplies from its Seal Sands plant in northeast England and from its Green Lake plant in Texas. Coupled with the ongoing turnaround of Formosa's Mailiao plant in Taiwan, the ACN market has been experiencing global tightness with little product available on the spot market.

As you can see from our data, prices rose 8% over the last two weeks, and 12% since the beginning of the year, in part due to stronger demand from the acrylic fiber sector, but largely due to the shortage of product on the spot market.

With further maintenance works planned globally in April and May, prices are likely to continue their upward trend, putting pressure on the margins of acrylic fiber producers.

Thanks for kicking off your Monday with us, and have a great week ahead!