In this week’s Market Movers Americas, presented by Marieke Alsguth:
• Cove Point maintenance pressures Northeast spot gas market
• Russian ban of refined products leaves Brazil market uncertain
• CAISO to discuss July emergency grid conditions
• Texas regulators mull power market changes
This week, the recent startup of terminal maintenance at Cove Point LNG will likely keep pressure on the Northeast gas market. The facility went offline last week, but its feedgas supply is now being pushed back into the regional market, weighing down gas prices. In Appalachia, and even across downstream demand markets in the Northeast, cash prices have traded below $1/MMBtu recently.
Diesel importers in Brazil are grappling with uncertainty following Russia’s announcement that it would temporarily ban exports of diesel and gasoline to ease domestic fuel prices and supply shortages. The ban could heavily impact Brazilian imports, as Russia has replaced the US this year as Brazil's primary supplier of imported diesel. Market sources in Brazil are unsure if diesel purchases from Russian refiners will be completed, but some say cargoes already on the water are likely to still arrive.
In power markets, the California Independent System Operator will host a stakeholder call on Sept. 27 to discuss the recently released Summer Market Performance Report. The grid operator had several challenging evenings in July, which saw the first Energy Emergency Alert and EEA Watches this year to indicate when electricity supply was tight.
Meanwhile in Texas, the state’s Public Utility Commission will meet to discuss several issues affecting the Electric Reliability Council of Texas market. These include energy efficiency, advanced nuclear power development, reliability standards, and more.
I’m Marieke Alsguth. Thanks for kicking off your week with S&P Global Commodity Insights.