In this week's Market Movers Europe with Daria Dabiri:
- COP28 enters final negotiations
- OPEC+ cuts struggle to lift prices
- Temperatures set to rise above seasonal norms
- Lifting the lid on Hinkley Point C
As COP28 draws to a close this week in Dubai, negotiations are set to intensify.
The first week has seen several pledges on renewables, methane, nuclear, loss and damage, emissions reductions and other issues.
But talks around the phaseout of fossil fuels as part of the global stocktake are likely to get heated.
Forging a consensus on carbon crediting and trading under Article 6 of the Paris Agreement will also be crucial after the resurgence of disputes over key definitions on carbon removals and project methodologies.
In oil, recent price weakness is raising questions about the latest OPEC+ output cut and its effectiveness in the face of rising US shale output.
OPEC will publish its monthly oil market report on Wednesday, followed by the IEA’s report on Thursday.
Russian president Vladimir Putin is also likely to be asked about oil at his annual press conference on Thursday, following his whistle-stop tour of Gulf oil producers.
The European gas market will be closely monitoring the weather, with temperatures set to rise above seasonal norms across much of Europe this week.
The first cold snap of the current winter saw consumption soar, with German gas consumption moving above the 2018-2021 average for the first time since April.
In European power, EDF Energy is preparing to lift Unit One’s massive reactor lid into place at Hinkley Point C this week.
This symbolic moment is set to give the delayed UK nuclear project a much-needed boost in its public image.
Initially due online in 2017, the plant’s projected capital cost has risen to GBP33 billion, and Unit One may not be online until well into 2028.
I’m Daria Dabiri, thank you for kicking off your Monday with S&P Global Commodity Insights.