In this week's highlights: OPEC+ meeting to focus on the possibility to extend production cuts; lockdowns set the pace for European gas demand; the EU is to discuss green industry investments; and steel markets await the results of Germany's ThyssenKrupp.
- Oil markets revise their outlook
- European gas demand trends in focus
- EU to discuss green industry investments
- Liberty looks to acquire Steel Europe
In this week's highlights: Lockdowns set the pace for European gas demand; the EU is to discuss green industry investments; and steel markets await the results of Germany's ThyssenKrupp.
But first, in oil markets there will be much talk of a delayed recovery and the possibility of OPEC+ producer nations potentially having to extend their production cuts at the current level of 7.7 million b/d into 2021, rather than easing the cuts at the end of the year.
It's a question that will be at the top of the agenda as the OPEC+ ministerial monitoring committee meets on Tuesday, ahead of a full OPEC+ meeting at the end of the month. Market participants will be closely watching for any early signals.
The prospects for recovery and what this would mean for the Middle East will be also in focus at the Middle East Petroleum & Gas conference, under way virtually on Monday and Tuesday and hosted by Bahrain. The event features top figures from the trading community, including from Chevron, Shell and Total, as well as the UAE's ADNOC, and trading company Vitol, to name but a few.
We'll also get an insight into Russia's perspective on the state of the markets when Gazprom Neft provides its Q3 results on Wednesday.
In the European gas market, traders will be keeping a close eye on demand trends amid new country lockdowns. In October, consumption rose due to the "double heating" impact of only partial lockdowns, with many people working from home but some offices also remaining open.
With full lockdowns now in effect across Europe, and mild temperatures forecast this week, demand may be impacted as workplaces are closed and industrial activity curtailed.
Pipeline supplies into Europe from Norway, Russia and North Africa are also continuing at relatively high rates this month.
Moving on to greener matters, EU ministers are virtually meeting this Thursday to discuss internal energy market and industry matters. The agenda will focus on how Europe can recover from the COVID-19 pandemic through green transformation and clean industry investments. The European Commission will be seeking political guidance on a new industrial strategy, backed by the Eur672 billion Recovery and Resilience Facility agreed in October to support public investments and reforms in the aftermath of the current crisis.
And that takes us to our social media question for the week: Can Europe use the transition to green initiatives as a way out of the COVID-19 crisis? Tweet us your thoughts using the hashtag #PlattsMM.
Now to another industry affected by the pandemic. All eyes in the steel market will be on Germany's ThyssenKrupp, announcing its fiscal full-year results on Thursday. The Thyssenkrupp Steel Europe division is expected to report a slightly improved Q4 performance, following Q3 losses as European steel demand slumped amid COVID-19-related lockdowns.
Negotiations are under way with Liberty Steel Group, which has put forward a non-binding bid for Thyssenkrupp Steel Europe, and talks are understood to have taken place with other potential suitors after ThyssenKrupp said it would be searching for a potential buyer for the steel unit following the collapse of merger talks with Tata Steel in 2019.
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Thanks for kicking off your Monday with us and have a great week ahead!