- commodity Tracker: 4 charts to watch this week
- carbon emissions reduction drives China’s steel production cut campaign and the US’ soybean oil demand.
- oil supply risks loom while the European gas price curve trades at record highs
4 charts to watch this week of commodity tracker mentions an article on SP Global.
4 charts to watch
1. M&A helps China to lower steel production
The Chinese government has ordered steel mills to reduce production in a bid to lower carbon emissions. Enforcement has been more stringent this time compared to the previous years, but it remains to be seen if another steel price climb would incentivize higher production.
2. US soybean oil supply likely to be tight in coming years
US President Joe Biden’s commitment to significantly reduce carbon emissions is likely to pressure US soybean oil supply in coming years as biodiesel production scales up in tune with rising demand for alternative fuel.
3. Oil supply risks rising in Nigeria, Libya, Iraq
Supply risks are rising in Nigeria, Libya, and Iraq. In Nigeria, Forcados exports, due to load 220,000 b/d this month, are on force majeure effective Aug. 13 due to technical issues.
4. European gas price curve at record highs
The European gas price curve trades at record highs through this coming winter, both in absolute terms and relative to the oil complex. With gas now the premium commodity, “oil first” upstream economics are being challenged, as operators look for ways to at least temporarily prioritize gas production.
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Source: SP Global
