In this week's Market Movers Europe with James Burgess:
- Carbon experts gather in Paris
- Energy transition talks in Hamburg
- EU gas storage almost full
- Economic uncertainties offset Middle East oil risk
In carbon markets this week, the Article 6.4 UN supervisory body will look to iron out a new framework for a global carbon market ahead of COP28, in a virtual meeting on Wednesday and Thursday.
Carbon markets have had a challenging year grappling with credibility concerns, low liquidity and falling prices.
Meanwhile, carbon experts will gather in Paris this week for the S&P Global Commodity Insights Carbon Markets Conference.
On Wednesday German and Norwegian energy ministers meet with energy sector leaders on Wednesday in Hamburg to discuss energy transition matters.
On the agenda is a proposed hydrogen pipeline to supply Europe's largest economy, as well as carbon capture and storage and offshore wind. This comes ahead of the deadline for Norway's first offshore wind tender on Nov. 15.
Mild and windy weather is expected to continue weighing on European power prices, although lower temperatures are expected later in November.
Heading into the winter season, EU gas storage is now almost completely full. With Norwegian exports close to capacity again after extensive maintenance work, the market may struggle to find homes for gas in Europe.
With LNG vessels already being used as floating storage, one option is Ukraine, which still has extensive spare gas storage capacity available.
Finally, in oil, prices have come off recent highs on the back of economic uncertainty and strong US crude production, but the market remains on edge given the risk of conflict escalation in the Middle East. Developments in the key energy region will continue to be closely watched.
I’m James Burgess, thank you for kicking off your Monday with S&P Global Commodity Insights.