The Middle East is in focus this week as Abu Dhabi hosts ADIPEC, the Abu Dhabi International Petroleum Exhibition and Conference.
Elsewhere, the International Energy Agency will publish the World Energy Outlook, its annual guide to long-term energy trends, on Tuesday.
Downstream, the jet fuel market will looking to see if prices will continue to rise, after they soared to an 18-month high relative to diesel last week. This is a result of stronger demand in Europe, which caused a draw down in stocks.
Meanwhile, in steel, European producers are expected to announce higher prices for their 2018 contracts following the BLECHexpo trade fair in Stuttgart.
Finally, the European natural gas market will be looking to the Netherlands Wednesday, with a top Dutch court due to publish its final decision on the Groningen gas field.
Do you see jet fuel maintaining a high premium to diesel? You can reach out to us by tweeting with the hashtag #PlattsMM.
Video Transcript
Market Movers Europe, Nov 13-17: IEA to publish World Energy Outlook; Groningen natural gas field awaits its fate; steel producers seek higher prices
With Anise Ganbold, EMEA energy analyst
In this week’s highlights: Abu Dhabi hosts a major oil conference; European steel producers look to raise prices; and a Dutch court is due to decide output from the Groningen gas field.
In oil news, the Middle East is in focus this week as Abu Dhabi hosts ADIPEC, the Abu Dhabi International Petroleum Exhibition and Conference, which features oil ministers from Nigeria, Oman and Sudan, the secretary general of OPEC, Mohammed Barkindo, the CEOs of Total, ENI and Lukoil, and no fewer than five executives from BP—which reflects BP’s new role in the UAE’s onshore oil operations concession.
Elsewhere, the International Energy Agency will publish the World Energy Outlook, the annual guide to long-term energy trends, on Tuesday. And the IEA and OPEC will publish their monthly oil market reports, in a period when rising oil prices are fueling speculation about the future of OPEC/non-OPEC production cuts.
Moving downstream, the jet fuel market will be looking to see if jet fuel prices will continue to rise, after they soared to an 18-month high relative to diesel last week. This is a result of stronger demand in Europe, which caused a draw down in stocks. However, prices could become more volatile as buyers of jet fuel will now be looking to the Middle East for supply. In November we expect Europe will import 1.7 million metric tons of jet fuel, using Platts trade flow software, cFlow.
Our question this week is: Do you see jet fuel maintaining a high premium to diesel? Please tweet us your thoughts with the hashtag #PlattsMM.
Jet fuel is not the only market bracing itself for a tug of war over prices. European steel producers are expected to announce higher prices for their 2018 contracts following the BLECHexpo trade fair in Stuttgart. Mills signaled price increases of 20 to 30 euros per metric ton to customers at the event, but resistance from buyers was notable.
And the European gas market will be looking to the Netherlands this week. On Wednesday, a top Dutch court is due to publish its final decision on the Groningen gas field. The court is expected to decide on the field’s annual production cap, which will move European prices, especially if the cap is lowered from its current 21.6 billion cubic meters a year of gas. As you can see from this chart, Groningen’s production has already fallen from a peak of 56 billion cubic meters as recently as five years ago.
Thanks for kicking off your Monday with us and have a great week ahead.