September 12, 2022 - This week, Asian sweet crude traders will be keeping a close watch on the Far East Russian oil market. Trades in the Sokol grade resurfaced recently after a four-month gap.
Traders expect some cargoes of the medium sweet Sokol crude to be offered for loading in the fourth quarter.
The Russian Energy Minister has hinted that Sokol oil output at the Sakhalin 1 project may restart before the end of the year.
In metals, China is set to release key steel output and downstream data for August.
It is expected to show a rebound in crude steel output in August, and the growth is likely to continue in September, supported by seasonal demand.
But property new home starts, the most important driver of steel demand, remain on a downtrend.
Asian thermal coal prices are expected to rise further on the back of strong demand from China for low-calorific value coal and from Europe for high-calorific value coal.
Persistent rain in Indonesia and Australia is expected to keep supplies tight and prices bullish.
In agriculture, an above-average rain forecast will exert pressure on Australian higher-protein wheat availability.
A shortage of mill-quality wheat may dent Australia's global market share -- at a time Ukrainian supplies are available in Asian markets.