In this week's Market Movers Europe with Masrur Choudhury:
- Gas market frets over extended Norwegian maintenance
- Tighter oil looms over summer
- Ex-Nigeria tanker freight rises on tax fears
- EU Council to finalize power market design position
European gas prices have been back on the rise again this month following the extensions to work at the major Nyhamna processing facility in Norway.
With the North Sea producer now the single largest source of supply to Europe, the market is increasingly sensitive to any interruptions from the country.
Additional planned work at the key Oseberg and Gullfaks fields is also taking place.
Oil prices have also bounced back somewhat, after IEA projections highlighted resurgent Chinese demand and a slowdown in US crude output.
These could lead to a tighter market, particularly into the second half of next year, even as peak oil demand is on the horizon by the end of the decade, the IEA said.
For Europe in particular, diesel and gasoil supply has tightened due to refinery outages, reduced imports from Asia, and falling water levels on the Rhine, which are restricting fuel deliveries by barge.
In Africa, tanker owners are wary of calling at Nigerian ports after the country's Federal Inland Revenue Service issued unexpected claims for back freight taxes – in some cases amounting to millions of dollars.
Freight rates out of the West African oil producer are consequently soaring.
EU energy ministers are due to finalize their position on electricity market design at the last council under the Swedish presidency today.
In March, the European Commission proposed measures to facilitate the integration of renewables into the market and to deal with price spikes, while emergency measures like the inframarginal windfall tax are to be phased out.
Ministers will also discuss preparations for winter gas supply, including the new joint purchasing platform.
I’m Masrur Choudhury, thank you for kicking off your Monday with S&P Global Commodity Insights.