In this week's Market Movers Europe with Lei Zhong:
- OPEC+ grapples with demand uncertainty, geopolitics
- Fourth EU joint gas purchasing round set to launch
- Hydrogen Bank fund launches pilot auction
- Netherlands goes to the polls
The focus for oil markets this week looks set to be Sunday’s OPEC+ meeting in Vienna.
Ministers will attempt to hammer out production quotas against an exceptionally volatile backdrop.
On the demand side, OPEC’s latest forecast is for "healthy" growth of 2.2 million b/d next year.
S&P Global Commodity Insights puts growth for the year at a more cautious 1.6 million b/d.
With Russia's push into Asian markets intensifying competition within the group, there is friction over how production cuts should be allocated.
The EU’s joint gas purchasing scheme launches its fourth round this week, with buyers invited to submit requests from Thursday.
More than 34 Bcm of gas demand has been matched with supply across the three tenders to date, although it is unclear how much of this gas has subsequently been contracted.
The EU also launches its Eur800 million pilot auction from its Hydrogen Bank fund to support hydrogen production on Thursday.
The mechanism, funded by proceeds from the EU’s Emissions Trading Scheme, will bridge the gap between green hydrogen production costs and market prices.
The Netherlands goes to the polls on Wednesday, with former EU climate chief Frans Timmermans in the running to be the next prime minister.
Coalition talks are likely to dominate the coming weeks, and the outcome could be significant for future energy policy.
Most parties favour an expansion of nuclear power, but that could be a sticking point for the Labour-Green alliance led by Timmermans.
I’m Lei Zhong, thank you for kicking off your Monday with S&P Global Commodity Insights.