In this week's Market Movers: Record low Rhine disrupts commodity flows; Trump gives traders fuel for thought; and Russian oil execs head to Italy.
Record low water levels on the Rhine are disrupting logistics across a range of commodities, with mixed results.
Fuel oil traders will be watching for further developments from the White House this week following news that the Trump administration could be looking to slow the adoption of lower sulfur limits in marine fuel.
Elsewhere in oil, Russian industry chiefs such as Rosneft CEO Igor Sechin and Novatek head Leonid Mikhelson will meet their global counterparts on Thursday at the Eurasian Economic Forum in Verona.
Big oil and gas companies also start unveiling their second-quarter results this week. Results are due from Norway's Equinor on Thursday and Total and Eni on Friday.
In European natural gas, the Italian environment ministry is set to announce its impact assessment on the planned Trans Adriatic gas pipeline.
Finally, in France, decision time is looming for the government's energy road map to 2028.
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In this week's highlights: Fuel oil traders are turning political buffs as they watch for news from Washington, while key announcements are expected on the TAP pipeline and the future of the French nuclear industry.
But first: record low water levels on the Rhine are disrupting logistics across a range of commodities, with mixed results.
German steelmaker ThyssenKrupp was forced to declare force majeure on Friday. The move will reduce available supply, supporting flat products prices in northern Europe. It adds to upward pressure on long and flat steel prices, amid expectations that the US could ease tariffs on Turkish steel entering the US this week.
Europe's ethylene market is seeing growing length, as demand from downstream polyethylene producers is hampered by transport difficulties. These difficulties are also affecting propylene spot activity, at a time when November contract price discussions are under way across a number of chemical markets.
For biofuels, the issues have led to a tale of two markets: on one hand, difficulties moving feedstock to the region have left biodiesel markets very tight in Northwest Europe, putting upward pressure on prices.
By contrast, ethanol is seeing the reverse, with problems moving ethanol inland leaving prices looking quite bearish.
Meanwhile, coal stocks are at four-year highs at Dutch ports as barges struggle to get through the Kaub chokepoint to downstream power stations. The low river level is also having an impact on a nuclear plant, which is struggling to conform with cooling water regulations.
Fuel oil traders will be watching for further developments from the White House this week following news that the Trump administration could be looking to slow the adoption of lower sulfur limits in marine fuel.
Last week there was a significant shift in fuel oil values for 2019 and 2020, with traders putting this down to Washington's desire to stagger the adoption of the tighter specification.
The IMO's much-discussed cut to the sulfur limit in ships' fuel from 3.5% to 0.5% is to take effect from 2020. The IMO is meeting in London this week to explore implementation of the cap, as well as measures to curb greenhouse gas emissions.
Elsewhere in oil, Russian industry chiefs such as Rosneft CEO Igor Sechin and Novatek head Leonid Mikhelson will meet their global counterparts on Thursday at the Eurasian Economic Forum in Verona. Political tensions and sanctions are sure to be on the agenda.
Big oil and gas companies also start unveiling their second-quarter results this week. Results are due from Norway's Equinor on Thursday and Total and Eni on Friday. The oil and gas majors are generally expected to show continued recovery and are stressing that they will keep a tight rein on spending.
And the International Energy Agency is also set to provide new insights into the oil world with the publication of a special report Thursday on the long- term prospects of major producers such as Saudi Arabia and Venezuela.
In European gas, the Italian environment ministry is set to announce its impact assessment on the planned Trans Adriatic gas pipeline. The pipeline, known as TAP, is the final piece of the Southern Gas Corridor bringing gas from Azerbaijan to Europe.
Any negative conclusions could tempt the new government to veto the project, which is facing renewed and robust local opposition. The lead sponsors of the corridor have said there is "no Plan B" to landing the corridor in Italy.
Finally, in France, decision time is looming for the government's energy road map to 2028. A nuclear closure schedule is the main focus of attention across the region, given France's status as a massive exporter of cheap atomic power.
A draft of the plan is close to completion, with President Emmanuel Macron reportedly inviting EDF, Engie and Total to a meeting this Wednesday as the cabinet meets.
Beyond nuclear, details of a planned coal exit by 2022 and ambitious wind and solar targets to 2030 are anticipated.
Thanks for kicking off your Monday with us, and have a great week ahead.