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Watch: Market Movers Europe, Oct 18-22: Russia prepared to increase gas supplies to Europe as energy crisis intensifies

In this week's highlights: Oil prices find solid support as executives meet for CeraWeek; gas pipeline capacity auctions to an indication of Russian intentions; LNG carrier rates rise above cyclical trend; petrochemicals companies to share burden of rising energy costs; and big metals and mining companies let us know how they fared in Q3.

  • Oil prices supported amidst energy crisis (00:23)
  • Gas markets to monitor Russia's actions (01:13)
  • LNG shipping rates tick up (02:33)
  • Metal industry to provide production update (03:52)
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In this week's highlights: gas pipeline capacity auctions should give an indication of Russian intentions; LNG carrier rates rise above cyclical trend; petrochemicals companies look to spread the pain from surging energy costs; and some of the big metals and mining companies let us know how they fared in Q3.

But first, to oil, where prices seem to be finding solid support above $80 a barrel as demand continues to bounce back from the pandemic lows. The latest data shows mobility in the world's biggest economies reaching its highest since the pandemic started, while aviation capacity also continues to pick up.

Against this backdrop, international oil and gas executives will be discussing the emerging pressure for a more rapid and substantial energy transition at the CeraWeek India Energy Forum, which will take place virtually - Wednesday through Friday - this week. A key theme is likely to be concerns over an investment shortfall now leading to future energy crunches.

That brings us to the European gas market, where with the crunch still firmly on, we will be looking out for any signs of Russian supply behaviour, in pipeline capacity auctions this week.

Gas prices have skyrocketed in the past few months as supply issues and stronger than expected demand have created a market imbalance. Russian President Vladimir Putin last week said Russia was prepared to increase supplies to Europe if it received requests for more gas, but according to Deputy Prime Minister Alexander Novak, no such requests have been received.

But actions speak louder than words, so the market will be monitoring the results of capacity auctions on October 18 to see whether Gazprom books more capacity via Ukraine and in the Yamal pipeline for November.

These would be an indicator of Russia making good on its suggestion that more gas is available for European buyers if they need it.

And that takes us to our social media question for the week: Can energy prices rise further and how high could they go? Tweet us your thoughts using the hashtag #PlattsMM.

Another potential source of gas for Europe, the LNG market, is becoming more expensive too, with shipping rates for LNG surging. Atlantic TFDE rates, also known as Tri-Fuel Diesel Electric carriers, have doubled over the past month to more than $120,000 a day.

LNG carrier rates typically start to rise around this time of year, but this year they are rising faster than the past two years. Further increases in rates are expected for November-December loadings, with $200,000 a day reportedly on subjects. BP set the all-time record in January 2020, paying $350,000 a day for a trans-Atlantic round voyage.

High gas and power prices continue to have ripple effects across other sectors, with petrochemicals producers in Europe applying price surcharges and some producers heard to be considering or already implementing cuts in production rates. Kem One, Lyondellbasell and Trinseo have all told their customers that they will be implementing surcharges, and other producers exploring the possibility of doing the same.

And finally, some of the largest mining and metals companies release their Q3 production reports this week. BHP and Anglo American will give their quarterly updates, as well as Russian companies Severstal, Nornickel and NLMK.

The Platts Atlas of Energy Transition is your map to the sustainable commodity markets of the future. You can explore the Atlas by visiting the address displayed on your screen.

Thanks for kicking off your Monday with us and have a great week ahead!