In this week's Market Movers Europe with Felix Fernandez:
- Supply concerns at World Petroleum Congress
- UK power exports seen picking up
- Gas market continues to monitor supply-side issues
This week, the oil industry gathers in Calgary, Canada, for the 24th World Petroleum Congress, where industry leaders will discuss the transformation of the industry and global demand.
Saudi Arabia’s Energy Minister, Abdulaziz bin Salman, is expected to address the congress today amid concerns about a widening supply gap following recent Saudi and Russian output cuts, as well as renewed fears over inflation.
In the power sector, a falling UK carbon allowance price has put the cost of UK gas-fired plants at a discount to its neighbours, leading to power exports to Belgium, France and the Netherlands.
With wind generation set to rise this week, UK flows to the continent could start to pick up to the point where the UK becomes a net exporter.
On the gas front, the market remains focused on the impact of supply outages ahead of the start of the gas winter.
Concerns stem from extended maintenance work in Norway, issues at the Freeport LNG facility in the US, and strikes at Australian LNG plants.
While European gas inventories are healthy at around 94% full, the market remains jittery and will be closely monitoring supply developments amid relatively weak demand.
I’m Felix Fernandez, thank you for kicking off your Monday with S&P Global Commodity Insights.