In this week's Market Movers Europe with Iris Poon:
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Russia, Saudi oil output cuts
- Key oil trade data
- Orsted results and wind sector costs
- Ukraine gas storage
- Chemicals contract prices
This week, oil prices are being buoyed by Russia’s and Saudi Arabia’s announcement that they will extend their output cuts.
Additionally, tensions are mounting in the Black Sea, where a drone attack on the Russian port of Novorossiisk on Friday has raised concerns of disruption to a vital Kazakh-Russian export route.
Two monthly oil market reports from OPEC and the International Energy Agency are due on Thursday and Friday, respectively, and will take a more global view. While the end of summer usually heralds softer demand, US crude inventories have been falling, and OPEC+ cuts are raising expectations of tighter supply.
In power, Danish offshore wind giant Orsted is set to report its first-half results on Thursday, and sector watchers will be eager to hear an update on development cost headwinds.
Gas traders will be watching Ukraine’s surplus capacity as a gas storage solution now, with EU sites more than 86% full. The market will be closely watching injection rates and the rate of supply to Ukraine, given its impact on the European market balance.
In chemicals, the August contract price for ethylene has settled at a rollover from July, while naphtha prices have risen and fundamentals have remained persistently weak across the value chain in July.
I’m Iris Poon, thank you for kicking off your Monday with S&P Global Commodity Insights.