보기: Market Movers Europe, July 17-21: Russia suspends participation in Black Sea Grain Initiative; oil market sentiment rises

The UN-brokered Black Sea Grain Initiative was suspended today as the Kremlin announced that Russia is terminating its involvement in the deal, citing unfulfilled conditions for its extension.

The safe-passage deal had been renewed for a third time in May for two months, allowing grain exports to resume from key Ukrainian ports.

Market participants will closely monitor the situation regarding grain exports from key Ukrainian ports and observe any potential shifts in grain and freight markets.

Oil sentiment has turned more positive amid expectations of US interest rates peaking and the dollar cooling, which tends to support oil demand.

The International Energy Agency lowered its demand growth expectations for 2023, but also raised them for 2024, citing a normalization of Chinese demand.

A promised production cut by Saudi Arabia and curbs on oil exports by Russia could also provide support.

Norwegian gas supplies to Europe and the UK are set to increase with the return of the Nyhamna processing plant and the Ormen Lange and Aasta Hansteen fields that feed into it.

Around one quarter of Norwegian gas production is processed in Nyhamna, and its extended maintenance shutdown led to renewed European gas price volatility through June.

There are now only limited planned maintenance operations in Norway for the remainder of July.

Southern Europe’s Cerberus heat wave is yet to have a material impact on electricity supply, but the first signs of stress could emerge this week.

According to the World Meteorological Organization, the heat wave will grip the Mediterranean region for the next two weeks.

French nuclear operator EDF has warned of cooling water restrictions on the Rhône, while excessive heat can compromise the efficiency of a range of technologies from solar panels to transformers.

I’m Fatemeh Zahedi, thank you for kicking off your Monday with S&P Global Commodity Insights.