In this week's Market Movers Europe with Vivian Iroanya:
- COP28 ongoing in Dubai
- Oil markets assess OPEC+ policy
- Heightened shipping risks after attacks in Red Sea
- Power markets on alert after November cold snap
- Gas trade monitors Norway flows
This week, all eyes are on the COP28 climate conference and its oil-producing host, the UAE.
Markets will also be weighing the significance of last week’s OPEC+ production cut announcement and the admission of Brazil as a new member of the group from January.
The cuts come against a backdrop of sagging oil prices, though financial markets anticipate interest rate pressures could start to ease, and a weaker dollar should support oil demand.
Markets will also be monitoring developments in the Middle East after attacks on shipping over the weekend.
In a sign of heightened risk to shipping and oil flows the US navy shot down several drones and cruise missiles launched from Yemen at vessels in the Red Sea, one of the world's most important chokepoints for crude tankers.
European power markets will be tracking temperature and wind forecasts after a cold snap boosted prices in late November. French power is most at risk from the cold.
Every degree centigrade drop in winter temperature pulls an extra two gigawatts of power onto the grid to help meet heating demand.
Overall, the system is much better supplied compared to last December. But only four French nuclear reactors are scheduled to return this week, so France might have to import during peak demand periods.
Norwegian gas exports remain a key focus for the European market, with more than 350 million cubic meters now flowing daily.
Norway is now the biggest single source of gas for Europe so the market will be watching for any unplanned outages that could impact exports heading deeper into winter.
I’m Vivian Iroanya, thank you for kicking off your Monday with S&P Global Commodity Insights.