In this week's highlights: Payments in rubles become due for Russian gas, a gloomy economic picture clouds the oil market, scrap metal markets debate import and export controls, and European blendstocks remain in high demand.
- Russian gas payments remain in focus (00:11)
- Oil faces recession fears, Russian uncertainty (01:07)
- Metal executives discuss scrap industry controls (02:01)
- Blendstock component premiums hit record highs (02:50)
In this week's highlights: A gloomy economic picture clouds the oil market, scrap metal markets debate import and export controls, and European blendstocks remain in high demand.
But first, in European gas markets, attention remains focused on Russia, as payments by the main European buyers become due under the new terms of the Kremlin's ruble-based payment mechanism.
Russian Deputy Prime Minister Alexander Novak has said that around half of Gazprom Export's 54 customers had opened new accounts at Gazprombank to execute payments under the new system.
Those not complying with the new mechanism could see their gas supplies suspended as was the case for Poland, Bulgaria and Finland.
Some of Europe's biggest buyers of Russian gas have said that they have found ways to continue to make payments that are compliant with EU sanctions against Moscow.
And that takes us to our social media question for the week: Will further gas supplies to Europe be cut if countries refuse to pay in rubles? Tweet us your thoughts.
In oil, Russia and the worldwide prospects for recession remain very much at the fore this week.
On the demand side, China is looking to ease lockdowns, just as the summer driving season and aviation sector pick up in the US. But increasing gloom over rising living costs, particularly in Europe, is also dampening the outlook.
In terms of Russia, uncertainty persists over the scale of European oil import bans, with some voices calling for a potential tariff mechanism to discourage shipments, as opposed to an outright ban.
In the UK, meanwhile, the North Sea oil and gas sector is holding the Offshore Energies UK conference in Aberdeen on Tuesday against the backdrop of intensifying public calls for windfall taxes, viewed by some in the sector as potentially damaging to long-term investment and energy transition projects.
Two conventions held in Barcelona will bring together executives from the global steel and scrap metals industries, as well as from the European steel distribution sector.
A hot topic at the event, being hosted by the Bureau of International Recycling, will be the increasing trend for nations to control scrap metals imports or exports as they strive to decarbonize the sector.
This comes as the European Parliament is due to vote in October on the European Commission's controversial review of its Waste Shipment Regulation, which seeks to restrict scrap metals exports from the EU.
The Eurometal stockholders and distributors' two-day conference will meanwhile study the challenges facing the Iberian regional steel sector at a time of significant steel price volatility.
Meanwhile, the prices of blendstock components for gasoline production — including benzene, toluene, MTBE and mixed xylenes — continue to soar amid a surge in demand from the US and Africa, with record premiums being set in some cases.
In Europe, many of these high value octane boosters have also been in tight supply, which has exacerbated the sharp uptick in prices we've seen in the last fortnight. This price trend is also expected to continue as the softening of COVID-19 restrictions globally coincides with the commencement of the summer driving season in Europe and the US at the end of this month.
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