In this week's Market Movers Americas, presented by Janet McGurty:
• PJM issues Hot Weather Alert for Monday
• Cove Point LNG annual maintenance looms
• Americas VLCC freight climbs on exports east
• Grains expecting pressure with harvest ahead
PJM Interconnection has issued a Hot Weather Alert with 90-degree temperatures for its Mid-Atlantic and Southern regions for Monday.
However, with upcoming maintenance at Maryland's Cove Point LNG terminal likely to get underway this week, about 700 MMcf/d in feedgas demand will push back into the Northeast natural gas market.
Additional gas supply from the terminal could help meet an expected surge in Northeast power demand this week, and potentially boost regional storage levels ahead of the upcoming winter heating demand.
Governors from six New England States have asked the US Department of Energy to consider a Jones Act waiver for LNG vessels to ensure energy supply.
Freight rates are poised to exceed $10.5 million lump sum for US Gulf Coast barrels and Worldscale 97.5 for Brazil barrels, as heightened demand for crude to replace Russian oil has boosted Americas freight for cargoes bound for Northeast Asia.
European efforts to swap out Russian barrels with US crude has also increased the number of VLCCs placed on subjects for long-haul vs. trans-Atlantic runs.
Back on land, the averted US rail strike has brought relief for agriculture markets. North American grains and oilseeds markets will continue to see pressure in the coming weeks as the upcoming harvest increases availability. Rail transport is crucial for crops to move to markets and fertilizers to move to fields after harvest.
I'm Janet McGurty. Thanks for kicking off your Monday with S&P Global Commodity Insights.