The increase in the price of oil led to an increase in the prices of gas and nitrogen fertilizers
During the month, oil quotations gradually increase in price against the background of statements about the reduction of production in August by Saudi Arabia by 1 million barrels and the Russian Federation by 500,000 barrels, as well as optimistic news about the economy of China and the world.
Yesterday, the IMF raised its global GDP forecast for 2023 to 3% (from 2.8% in April) due to improving macroeconomic indicators in the US.
The Chinese government has announced measures to support economic growth, so the market is hoping for an increase in energy demand in the country.
September Brent oil futures on the ICE exchange rose 5% to a record $83/barrel for the week, adding 12.6% for the month, although they traded at $25/barrel back in April.
The market fears that Ukraine may attack the port infrastructure of the Russian Federation in response to the shelling of the grain terminals in Odesa and Rennes.
In line with oil prices, the European spot gas price rose by 11.2% and as of July 25 at the TTF hub in the Netherlands was $359.9/thousand cubic meters for day-ahead contracts.
Europe continues to pump gas into storage, and inventory levels currently stand at 83.74%, 15% above the 5-year average for the period. If such rates are maintained throughout the summer, by the end of September it will be possible to fill 90% of the storages.
Gas prices in Europe began to fall at the beginning of the year amid an unusually warm winter and significant gas stocks in storage. Currently, the EU is discussing the possibility of gas storage in Ukraine, which could become the largest gas hub in Europe.
Against the backdrop of rising gas prices, the Ostchem company increased the price of nitrate by UAH 1,000/t from July 24, 2023, although it previously planned to raise prices even more.
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