Western Europe

Fluxys' data shows that a?24-hour strike in France’s power sector is expected to?reduce delivery capacity at?the Dunkirk liquefied natural gas terminal?to 4 gigawatt hours per day as of 0700 GMT Tuesday. Fluxys' data shows that the terminal delivers at least 9.4 GWh a day. The unions at the state-owned EDF, Fluxys (a Belgian gas terminal operator) and Elengy (a French gas terminal operator) have called a strike on Tuesday to protest a French Court of Auditors recommendation to reduce employee benefits like?access to cheaper electricity. France is one of Europe's biggest gas exporters. The strike occurs as Europe rushes to...

Oil producers in the Americas, from Canada to Argentina have benefited during the Iran War by regaining market share that Middle Eastern exporters lost. This renewed focus on global energy security could turn this emergency response into an enduring?structural shift. Since the Iran War and the closing of the 'Strait of Hormuzsix month ago, a fifth of world?oil supply was disrupted. This is the biggest shift in global energy landscape in decades. The Hormuz shutdown immediately caused a scramble for Middle Eastern barrels to be replaced. The Americas emerged as the main beneficiary. According to Kpler, crude exports in the...

Six months after the U.S. vs. Iran war began, it has hardened into a stalemate which could last until 2027. The conflict is raging, energy markets are held hostage and inflation is high. Neither side wants to or can back down. The war that has caused thousands of deaths and extensive damage in the Middle East has taken on a new face. The war began on February 28, as a joint U.S. and Israeli effort to cripple Iran, aiming at eliminating Tehran's nuclear programs, weakening its proxy network and possibly topple the Government. It has become a more narrow?struggle centered...

Six months after the U.S. vs. Iran war began, it has hardened into a stalemate which could last until 2027. Energy markets are held hostage and inflation is high, but neither side wants to or can back down. The war that has caused thousands of deaths and extensive damage in the Middle East has taken on a new face. It started on February 28, as a joint U.S. and Israeli effort to cripple Iran, aiming at eliminating Tehran's nuclear programs, weakening its proxy network, and possibly topple the Government. It has evolved into a more narrowly focused struggle centered on...

The Iran War has brought the oil refining sector to its knees, indicating that gasoline and diesel prices could remain high for many years. The global energy inflation shock will continue to be felt, whether or not a deal is reached. Oil markets have adapted well to the sudden loss of a quarter of the world's crude oil supplies during the conflict in the Middle East, but the refinery industry has had fewer options. The difference between the crude oil and fuel prices is telling. Benchmark Brent crude is currently around $90 per barrel. Although this is a 25% increase...

The Iran War has brought the oil refining sector to its knees, signaling that gasoline and diesel prices could remain high for many years. The global energy inflation shock will not be over until a deal is reached. Oil markets have adapted well to the sudden loss of a 5th?of the global crude supply from the Middle East due to the conflict. However, the refinery industry has had fewer options. The difference between the crude oil and fuel prices is telling. Brent crude oil, the benchmark price for all other crude oils, is around $90 per barrel. Although this is...

Oil market behavior is becoming more and more like a permanent reality. It's not just a temporary shock. Hopes for a diplomatic breakthrough are fading nearly six months after the war between Iran and the U.S. erupted. The interim ceasefire that was agreed to on June 17 is now 'effectively over,' the 60-day negotiation period has ended, and neither Washington or Tehran appear willing to compromise about the future of Strait of Hormuz. Both sides have instead dug in. Iran warned that tensions would escalate if Washington did not fully implement the interim peace agreement within a few weeks. A...

BP has received a windfall from the Middle East conflict, thanks to higher gas and oil prices. This will help Meg O'Neill in her efforts to stabilize the ship. The Iran War has made the future of energy less predictable and has complicated BP's attempts to chart a course for the long term. BP is today 'on a much firmer footing than it was in February when it reduced planned capital expenditure for 2026 due to growing concerns about looming oil and?gas surpluses that would impact on prices and earnings. This narrative was flipped on its head when the Iran...

The Iran war has triggered record oil refining earnings that have boosted Big Oil's profits, giving new life to a business which many investors had written off. Refining is expected to produce strong returns over the next few years. However, structural changes in oil demand will cause its star to fade. Refining is the least glamorous part of the oil industry, despite its critical role in the global energy chain. Western oil majors have been steadily retreating from the sector for the last two decades. They were 'deterred' by high operating expenses, notoriously volatile profit margins, increasing carbon costs, and...

The Iran war has triggered record oil refining earnings that are reviving the Big Oil business. Many investors had written it off. The sector is expected to deliver strong returns over the next few years. However, structural changes in oil demand will cause refining to lose its shine quickly. Refining is the least glamorous part of the oil industry, despite its critical role in the global supply chain. Western oil majors have been steadily retreating from the sector in the past 20 years, due to high operating costs, volatile margins, rising carbon costs, and increasing competition from state-backed refining companies...

Energy markets are stuck in a limbo of uncertainty that is not easy to get out. Buyers are increasingly worried about the reliability and security of Gulf supply, which is creating a new alarming norm for producers in the region. The energy sector in the Middle East is more vulnerable and weaker than ever before, five months after Israel and the United States launched their military strikes against Iran. Energy infrastructure is under attack, and shipping routes are becoming increasingly restricted. Importers are starting to avoid supplying a region which accounted for a fifth of the world's oil and LNG...

?China has been viewed as the main driver of future LNG demand by producers for years. This helped justify billions in investment infrastructure from?the U.S. Gulf Coast up to Qatar. China's appetite is waning for super-chilled fuel, even though producers are preparing a new wave of supply in the coming years. This could undermine the viability of future projects that rely on long-term needs of imports from Asia and Europe. The Iran 'war' has triggered a second global LNG supply crisis in four years, following Russia's invasion of Ukraine?in 2022. This is reinforcing China's push to prioritize domestic gas, pipeline...

EDF data shows that a French labor strike in the 'electricity sector' took 6.5 Gigawatts of power offline overnight on Monday as unions protested a recommendation to curb employee benefits like access to cheaper electricity. The main source of electricity cut was seven French nuclear reactors. Several hundred megawatts from?gas-fired or hydroelectric power were also taken offline. France produces about 70% of its electricity with its 57 reactor fleet. It is also a major?exporter at a time where power prices are high, as countries like Germany that rely on gas have to pay a higher price to generate electricity. Data...

As investors prepared for the Federal Reserve to raise interest rates, the U.S. Dollar rose on Monday. The dollar is supported by the warnings of leaders of the largest AI companies regarding the dangers of AI. The U.S. Dollar Index, which tracks currency against six major counterparts, rose last by almost 0.6%, after previously touching 99.648, it's highest since September 2. The euro dropped to its lowest level in a month at $1.153, and last fell by 0.5%. Meanwhile, the British pound dropped 0.5% to reach $1.3474. Brent crude rose 3% to $108 per barrel, causing investors to panic and...

British government bond yields increased further on Monday. They 'hit new multi-year peaks across the ranges of maturities. According to LSEG, the 30-year gilt yield reached?its?"highest level since march 1998 at 5.951% and stood last 3 basis points higher on the day. Both the 10-year and 5-year yields rose by about?6 points in one day. The 10-year yield reached its highest level since July 2007, while the 5-year rate was at its highest since August 2008. Investors have increased their bets on the BoE tightening policy in the coming year due to the rising inflationary threat posed by the oil...

The U.S. Dollar rose to its highest level in two weeks on Monday, as the conflict in the Middle East drove up oil prices and pushed investors into the "safe-haven" currency. This weighed on the yen's recent gains. The dollar was boosted by the warnings from CEOs of frontier companies about AI's potential dangers. Meanwhile, rising bets placed on the Federal Reserve raising rates on Wednesday also helped the U.S. Dollar. The U.S. Dollar Index, which tracks currency against six major counterparts, rose last by almost 0.4%, after previously touching 99.6, the highest level since September 2. The euro dropped...

Malaysian palm oil futures rose on Monday due to higher crude oil prices. Also, rival soy oil prices in the Chicago market also helped. At closing, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange was up 39 Ringgit or 0.81% at 4,853 Ringgit ($1,191.21) per metric ton. A Kuala Lumpur trader stated that "Today's FCPO is holding steady on the back of a strong?crude?oil with the anticipation of better demand?for bio-diesel use in the future." Crude oil prices rose more than 3% on the Monday after a new attack on Saudi Arabian energy infrastructure and an attack on...

U.S. Dollar rose to two-week-high on Monday, as conflict in the Middle East drove up oil prices and sent investors into the safe-haven currencies. This weighed particularly 'on the recently buoyant yen. The dollar was boosted by the warnings of CEOs of frontier companies about AI's potential dangers. Meanwhile, rising bets placed on the Federal Reserve raising rates on Wednesday also helped the U.S. The U.S. Dollar Index, which tracks currency against six major counterparts, rose last week by almost 0.5%, to 99.59. This is its highest level since September 2. The euro dropped to its lowest level in a...

British government bond yields climbed again in the early trading on 'Monday. They reached new multi-year peaks across a range of maturities as oil prices rose in response to an accelerating deterioration in supply in the Middle East. According to LSEG, the 30-year gilt 'yield' reached its highest level since march 1998 at 5.951%. It last stood 2 basis points higher on the day. The 5-year yield reached its highest level since July 2008, and rose 6 basis points in one day. Investors have 'doubled down' on their bets that rising oil prices would force the BoE to tighten policy...

Uniper, Germany, announced on Monday that it had agreed to sell a 20% stake in the 'gas pipeline Opal', one of Europe’s largest transmission corridors. This brings it closer to completing the asset sales demanded by Brussels, in exchange for approval of the utility's'state bailout' 2022. The sale of the stake to Hy24, a joint venture of private equity fund Ardian with asset manager FiveT Hydrogen, is subject to regulatory approval and the non-execution by Gascade of Opal's coowner right of preemption. No financial details have been disclosed. Uniper has only two assets to sell by the end of 2026....

Investors pondered the possibility of rate hikes by the Federal Reserve and?Bank of Japan. Meanwhile, a rise in oil prices?amped down risk sentiment. As the fighting in the Middle East intensifies, global policymakers are faced with unpredictable pricing pressures. Oil prices have risen well above $100 a barrel. Rates have also been impacted by steep sales of long-end bonds. The European Central Bank increased rates last week, and warned against further increases. This was ahead of the Fed's policy announcement on Wednesday, and a widely anticipated rate hike by the BOJ this Friday. The Bank of England will likely remain...

Malaysian palm futures jumped on Monday, supported by higher crude prices and rival soy prices in the Chicago market. By midday, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange was up 62 Ringgit or 1.29% at 4,876 Ringgit ($1,198.03). A Kuala Lumpur-based trader stated that "Today's FCPO is holding firm due to the strong crude oil and the?anticipation for better demand in the future for bio-diesel use." Oil prices rose by more than 3% Monday after Houthi attacks on Saudi Arabia and Iranian attacks against ships in the Gulf compounded concerns about supply 'following the closing of a...

Monday's oil prices increased by more than 3% after the Houthi attacks on Saudi Arabia, and Iranian attacks against ships in the Gulf, compounded the supply concerns caused by the closure of an important Saudi oil pipeline. Brent crude futures increased $3.21 or 3.1% to $107.82 a barrel at 0340 GMT. WTI futures rose $3.17 or 3.2% to $103.22 a barrel. "This is a result of a step up in attacks against Saudi Arabian energy infrastructure. This includes targeting the vital east-west pipe," said ING commodity analysts, but noted that it was not clear how serious any potential 'damage would...

The dollar strengthened on Monday. The yen wobbled near a seven-month peak as investors considered possible rate hikes by the Federal Reserve and Bank of Japan this week. Meanwhile, rising oil prices due the intensifying conflict in the Gulf drained sentiment. The six-month long U.S./Israeli war against Iran has caused erratic price pressures that have pushed oil well above $100 a barrel. This has also shifted the rate path due to bouts of selling off in long-end bond. The European Central Bank increased rates last week, and warned that there would be more hikes. This set the stage for Wednesday's...