Petrochemicals and iron ore are among this week's commodities highlights, while traders will also be keeping a close eye on the final offer price for Saudi Aramco shares. The oil market is waiting for the next meeting of OPEC and its allies in Vienna, and COP25 annual climate summit kicks off in Madrid.
Petrochemicals and iron ore are among this week's commodities highlights, while traders will also keep a close eye on the final offer price for Saudi Aramco shares.
But first: the oil market is waiting for the next meeting of OPEC and its allies in Vienna on Thursday and Friday.
The oil-producing countries will gather to decide on the future of their 1.2 million barrel a day supply cut agreement, which is due to expire in March.
Rather than expand the size of its production cuts, the bloc is leaning toward extending its production quotas for three to six months.
There is some pressure on OPEC to make deeper cuts to balance the oil market ahead of an impending crude supply glut in the first half of 2020.
Another talking point will be how to tackle condensate production, especially from non-OPEC countries.
Non-OPEC kingpin Russia is expected to press the coalition to change its oil output calculations.
Quotas for OPEC members only cover crude production, while non-OPEC participants in the deal were allowed to include their condensate production when determining their baseline for cuts.
Russian condensate output is expected to increase as new gas production comes on stream.
Energy Minister Alexander Novak has been arguing that because condensate is not exported, it should not be included in the deal.
Moving from Vienna to Madrid, where the COP25 annual climate summit gets underway Monday.
Delegates from more than 190 countries are aiming to thrash out the rules that will make the Paris climate agreement work.
In particular, a key item left outstanding from last year's summit in Poland is Article 6 - the part of the deal that sets out a global system of emissions trading.
Making full use of flexible mechanisms such as emissions trading is estimated to slash the cost of decarbonizing economies by half, according to the International Emissions Trading Associations.
This herculean effort is also boosted by the falling cost of renewable energy and other emerging technologies.
But country pledges so far are falling well short of what is needed to avert serious environmental damage.
If you click on the link below you can see that, of the eight major economies which account for 67% of global greenhouse gas emissions, only Europe is gearing up to extend its Paris commitments.
It is conference season in the petrochemicals market.
The European Petrochemicals Lunch will be held in Rome on Thursday and Friday; The Gulf Petrochemicals and Chemicals Association conference will take place in Dubai on Tuesday to Thursday, and PlastEurasia in Istanbul from Wednesday to Saturday.
The focus will be on a wide range of issues, including the fallout from the explosion at TPC Group's Texan butadiene facility and challenges in the polymer markets caused by the continued weakness of the Turkish economy.
The conferences are also expected to give some insight into further reductions in 2020 contract volumes as well as the low cracker margins and operating rates of European producers.
In London, Brazilian iron ore company Vale will host its annual investor day on Wednesday when the company is expected to give an outlook for iron ore pellet premium settlements for next year.
It will also provide details on its iron ore fines and pellet production and sales strategy by product and region.
This should give the steel industry an indication of whether iron ore prices will fall back below 80 dollars a metric ton CFR China next year.
As you can see from the chart on your screen, iron ore prices have been high this year due to supply constraints caused by the Vale dam disaster in Brazil in January.
And that brings us to our social media question: Are seaborne iron ore prices going to fall below $80 and stay there in 2020? Tweet us your thoughts with the hashtag #PlattsMM.
Finally, another price in the spotlight.
Saudi Aramco will announce the final offer price of its share listing on the domestic stock exchange, the Tadawul
The valuation of the world's largest oil producer has been set at 1.6 to 1.7 trillion dollars, making Aramco the biggest publicly traded company in the world.
All eyes are now on whether Crown Prince Mohammed bin Salman can deliver on his Vision 2030 roadmap and transform the change-resistant kingdom into a dynamic, diverse economy that can persevere once the world has moved beyond oil.
Thanks for tuning in and have a great week ahead.