Commodities Focus

This year has been a roller-coaster ride for the Asian light ends market, as the coronavirus pandemic gripped the world, slashed demand for refined oil products and forced the closure of several refineries across the region in its wake. The future of the light ends market will hinge largely on how fast the world progresses in its fight against the pandemic and its economic impact. In this podcast, S&P Global Platts light ends experts Wendy Cheong, Mark Tan, Wanda Wang, and Ramthan Hussain look ahead and explore the potential paths of the Asian gasoline, naphtha and LPG markets in 2021. Related content China rolls out new oil export quotas in bid to cut stocks at home Europe's Dec naphtha arbitrage limited by shipowner interest; Asia firm for Jan arrivals US LPG arrivals to Asia in Dec to be around 2.7 million mt: traders

Ira Joseph, head of gas and power for Platts Analytics, and Ryan Ouwerkerk, manager of Americas natural gas pricing for S&P Global Platts, are joined by Gary Hornby, managing editor for European gas, to discuss global gas movements as we inch into winter with a specific focus on the increasingly important role of Ukrainian storage and transit in the larger European natural gas market both this winter and beyond.

The coronavirus pandemic has had opposing effects on the grains and ethanol markets, despite the strong interlinkages between them. While grains are one of the major feedstocks for ethanol production and prices are usually highly correlated, changing demand dynamics as a result of the virus saw the decoupling of this relationship. S&P Global Platts reporters Alex Bobylov and Karim El Afany discuss with Robert Beaman the reasons behind the price divergence in grains and ethanol and what to look out for in 2021.

Tanker freight for clean and dirty ships hit multiyear lows in October, subverting winter seasonality which typically brings year highs for freight for both sides of the market. Demand for crude and petroleum products remains low worldwide, and as Europe and the Americas face second- and third-wave lockdowns, tanker market participants have mixed expectations for the rest of the year. Marieke Alsguth, Catherine Wood, and Nicole Baquerizo of the S&P Global Platts shipping team discuss how 2020 freight patterns have diverted dramatically from the norm in the Americas, and what shipowners have their eyes on as potential strengtheners of the market.

The US Pacific and Mountain regions experienced a slate of outside factors affecting storage volumes during the 2020 injection season. The onset of the coronavirus pandemic in March prompted natural gas demand to drop by as much as 15% during the spring in parts of the Pacific Northwest. The subsequent oil and gas price collapse led producers in surrounding basins to curb production as pipeline maintenance that decreased imports from Canada also limited inflows. Brutal heat and raging wildfires also played a role in seasonal demand as the region faces a possible bullish outlook this heating season.

Ira Joseph, head of gas and power for S&P Global Platts Analytics, and Ryan Ouwerkerk, manager of Americas natural gas pricing for S&P Global Platts pivot away from the extended outlook into the winter and dive into more immediate spot market movements and their bullish impact on several global natural gas & LNG pricing points.

Natural gas storage in the US Northeast, which serves as the heart of dry production in the Lower 48, entered the current injection season with volumes towering over normal levels. However, the onset of the coronavirus pandemic in March, followed by pipeline outages and producers voluntarily shutting in some production, has allowed supply and demand fundamentals to balance. This led to below average injections late in the summer, with current storage volumes now sitting just above the five-year average. Northeast gas hub prices are strengthening as the injection season winds down and the region faces a withdrawal season riddled with questions. Brandon Evans and Eric Brooks of S&P Global Platts look at the factors shaping the market.

S&P Global Platts senior natural gas writer Harry Weber and S&P Global Market Intelligence natural gas reporter Corey Paul discuss with Platts senior digital editor Jason Lindquist current trends in the North American gas midstream sector as operators of pipelines, processing facilities and liquefaction terminals begin to release third-quarter financial results. The outlook for demand and growth spending will be among the key things the market will be watching.

Ira Joseph, head of gas and power for S&P Global Platts Analytics, and Ryan Ouwerkerk, manager of Americas natural gas pricing for S&P Global Platts, are back, this time to lay out the bullish and bearish cases for Henry Hub, TTF and JKM heading into winter. While the key element will be whether winter temperatures will arrive in key global demand markets, listen in to hear about how the interplay of declining US production, bulging US and European storage inventories, floating LNG storage, new pipeline infrastructure and Chinese demand will converge to drive pricing higher or lower.

Front of mind to the California Independent System Operator is resource adequacy, as it also works to adapt the market to the energy transition taking place globally. Outgoing President and CEO Steven Berberich talks with S&P Global Platts editor Kassia Micek about those issues and continuing regional collaboration in the West.