In this week's highlights: civil unrest impacts Kazakhstan's Tengiz oil field, EU consultation decision on nuclear pending, and safeguards review for European steel imports fast-tracked.
- Geopolitics, omicron recovery in focus (00:13)
- EU taxonomy consultation closes (01:45)
- EC advances steel import safeguards review (02:48)
In this week's highlights: civil unrest impacts Kazakhstan's Tengiz oil field, EU consultation decision on nuclear pending, and safeguards review for European steel imports fast-tracked.
But first, oil prices have pushed up above $80 per barrel in the futures and Dated Brent markets, supported by geopolitical concerns, expectations of recovery for the year ahead, and high gas prices, which have encouraged switching to oil for power generation and industrial use. All that comes despite the seasonal demand trough many had expected to see.
In terms of geopolitics, a key factor has been civil unrest in Kazakhstan and the decision to call on Russia for security assistance. We've seen some impact on production at the highest-producing Kazakh oil field, Tengiz, with operations now said to be returning to normal. We continue to closely monitor events.
Platts expects to publish its own update on OPEC+ production volumes this week following the producer group's decision to press on with measured output increases at its latest meeting.
The UAE Energy Forum takes place Wednesday, hosted by Energy and Infrastructure Minister Suhail Mazrouei, with OPEC Secretary General Mohamad Barkindo also speaking. That's followed by the International Renewable Energy Assembly, also in Abu Dhabi, over the next weekend.
And that takes us to our social media question for the week: How likely are crude oil prices to stay above the $80 per barrel mark? Tweet us your thoughts using the hashtag #PlattsMM.
Turning to power generation fuels, the European Commission's consultation on including nuclear and gas in its sustainable investment taxonomy is due to close this Thursday, although there are rumors of a requested extension given the sensitivities around this delayed Delegated Act.
The debate on the act, which paves the way for investors to access finance for qualifying projects, has raged between anti-fossil fuel and nuclear factions in Europe, and those members states that want to press ahead with new reactors and CCGTs. The proposals set tough conditions on new gas plant, including greenhouse gas emissions lower than currently achievable for power-only applications, and requirements to switch to low-carbon gas progressively from 2026.
A decision on nuclear energy's inclusion, meanwhile, has been repeatedly delayed because of disagreements between France and Germany about the sustainability of nuclear power.
And finally, the European Commission will this week advance a review of its system of safeguards on steel imports into the EU. Monday marks the commission's deadline for receipt of comments on the safeguards, and on how the lifting on January 1st of Section 232 tariffs on imports of EU steel into the US may have impacted trade flows.
The EU safeguards were introduced in 2018 to prevent a steel import flood following imposition of the Section 232 tariffs by the US in March that year and in July 2021 were renewed for a further three years. The current review covers 26 product categories.
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Thanks for kicking off your Monday with us and have a great week ahead!