Cold November to provide short term boost to energy prices

The latest forecast from meteorologists WSI point to warmer than normal temperatures this winter (Nov-Jan) in western/northern Europe. Warmer than normal temperatures are likely to reduce demand for gas and oil for heating.

In the short term the UK may be an exception. The UK is forecast to see colder than normal temperatures in November, particularly early in the month.

UK gas prices (summer-13 contract) rose to their highest level since April following the reports publication. UK heating oil prices are currently around 61p per litre.

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Cooking oil prices to rise as Chinese seek ‘crush’ margins

Forecasts of a 25% hike in palm oil prices could support increased imports of soybean into China as farmers take advantage of the ‘crush margin’ to produce soya oil.

According to a report in Reuters, one of the largest palm oil producers Sime Darby Bhd. forecasts that palm oil prices may rise by almost one-quarter over the next eight months. Malaysia, the second biggest producer after Indonesia has announced a plan to cut taxes on exports while also abolishing the duty-free shipment quota from the start of 2013. These measures should help to reduce inventories, supporting higher palm oil prices.

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Further reading: energy bills, China’s economy and Black Monday

Energy

Energy bills will surge by €9.5 billion next year (Supply Management)

Hot under the collar (Economist)

Freight

Apple at the core of rising global air freight costs (Lloyds List)

Risk Management

Delta Airlines Buys its Own Refinery to Cut Fuel Costs (OilPrice)

China

China’s economy in Q3: the good, the bad, and the absurd (Also Sprach Analyst)

China’s Economy: The Third Quarter (WSJ)

Commodities

By 2015 Hard Commodity Prices Will Have Collapsed (EconoMonitor)

Finance

Black marks from Black Monday (Economist)

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