In this week's Market Movers: Carbon capture will be under discussion in the UK, European power markets are focusing on French reactor closures and Brexit remains top of the agenda for carbon traders in a highly volatile market.
First off, plunging oil prices have raised expectations OPEC and its partners will cut production when energy ministers meet in Vienna next week.
By how much would OPEC and its partners need to cut production to support prices? Tweet us your thoughts with the hashtag #PlattsMM.
In London, Brexit will be closely watched by traders and hedgers in the carbon market. Also in the UK, energy ministers will gather in Edinburgh on Wednesday for a summit intended to kick-start the use of carbon capture technology in depleted North Sea fields.
In European power, the focus will be on French energy plans expected to be unveiled Tuesday by President Emmanuel Macron. Meanwhile, German power traders are looking for answers on a similar topic, but they may have to wait a bit longer.
In LNG, four more cargoes are due to land in the UK this week, after send-outs last week hit a seven-year high.
And finally, London will host the annual Mines and Money event starting today.
In this week's highlights: Carbon capture will be under discussion in the UK, European power markets are focusing on French reactor closures and Brexit remains top of the agenda for carbon traders in a highly volatile market.
But first, plunging oil prices have raised expectations OPEC and its partners will cut production when energy ministers meet in Vienna next week.
Brent crude fell below $60 per barrel last week for the first time since February, as rising production levels added pressure, with Saudi output approaching the 11 million barrel-per-day mark. Along with rising US and Russian production, this has contributed to a feeling of crude oversupply.
First signals could come this Friday from the G20 summit in Argentina, where oil prices will be very much in the minds of world leaders.
And that's the focus of this week's social media question: By how much would OPEC and its partners need to cut production to support prices? Tweet us your thoughts with the hashtag #PlattsMM.
In London, Brexit will be closely watched by traders and hedgers in the carbon market.
EU leaders on Sunday endorsed an agreement on the UK's withdrawal from the bloc, alongside a political declaration on future relations. Focus now shifts to how Prime Minister Theresa May can get the deal through parliament. Any trouble there could be a bearish signal for EUA carbon prices, which have more than doubled so far this year.
Also in the UK, energy ministers will gather in Edinburgh on Wednesday for a summit intended to kick-start the use of carbon capture technology in depleted North Sea fields.
The meeting will be attended by IEA chief Fatih Birol and industry CEOs such as BP's Bob Dudley and Shell's Ben van Beurden.
In European power, the focus will be on French energy plans expected to be unveiled Tuesday by President Emmanuel Macron.
The key question is whether France is ready to close any reactors before 2028. The already-delayed plan will also set new targets for wind and solar and detail when the last five French coal plants will shut.
German power traders are looking for answers on a similar topic, but they may have to wait a bit longer.
The country's coal commission meets Wednesday for the last time before a report due ahead of UN climate talks next week in Poland. The government-appointed commission may need extra time for its final report, with the deadline reportedly slipping into January.
Meanwhile, lower grade coal cargoes have flooded into Europe while coal stocks in the Dutch terminals are already at multi-year highs due to low river levels. This may leave traders unlikely to entertain many offers this week.
China's announcement that it would clamp down on imports for the rest of the year, combined with low Indian demand, has meant European buyers have been overburdened with offers.
In this chart you can see how front-year coal prices have fallen by 15% since hitting 100 dollars per metric ton in October. At the same time, the blue line shows how European gas prices have also eased due to improved supply – especially from LNG.
On the subject of LNG, four more LNG cargoes are due to land in the UK this week, after send-outs last week hit a seven-year high.
Cargoes are due from Qatar, the US, Russia and Trinidad & Tobago.
With the gas interconnector between Belgium and the UK expected to be underused in coming weeks after the expiry of long-term contracts, LNG could be the preferred choice for shippers to bring gas to the UK.
And finally, London will host the annual Mines and Money event starting today.
A likely topic of conversation will be market instability; nickel has hit a fresh 2018 low, having declined 30% since June. One new focus will be on battery manufacturing in Europe. Interest stirred by BASF's plans to evaluate investment in such facilities.
Thanks for kicking off your Monday with us, and have a great week ahead.