In this week's Market Movers Europe with Associate Editor Ibi Akinnola, who covers LNG freight markets:
- OPEC+ supply cut changes the tone
- French refinery strikes continue
- Gas cap debate rumbles on
- Europe to ramp up nuclear capacity
Last week's decision by OPEC+ to cut output by 2 million b/d has changed the tone in the oil market, but US interest rate policy, the strength of the dollar and recession fears remain big influences.
These and other factors will be assessed in two monthly market reports from OPEC and the IEA out this week.
In Europe, French refinery strikes are tightening the diesel market, compounding the impact of Russian boycotts. We'll be keeping an eye out for a resolution.
Discussion of proposals for a cap on the price of gas in Europe are set to rumble on this week as member states seek to delink energy bills from the wholesale market.
A group of four EU countries proposed a price corridor for all transactions, limiting extremes and suppressing speculation.
The problem for all the caps is the limited leverage Europe has in a global market. Key supplier Norway has stressed it is up to commercial operators where gas flows and at what cost.
In power markets, available French nuclear capacity is set to rise above 30 GW this week for the first time since early June.
Five reactors are scheduled to ramp up this week, but three more are set to be taken offline at the weekend. Overall, another 20 are scheduled to return before Christmas as EDF strives to maximize available capacity.
Meanwhile, the German government is expected to finalize its nuclear emergency regulation to allow for two reactors to operate beyond the mandatory end-2022 closure dates.
I'm Ibi Akinnola, thank you for kicking off your Monday with S&P Global Commodity Insights