Global product markets weekly: Asian refiners pull down global margins

For the week commencing 28 May, weekly average crude prices trended lower across all regions. The weekly average Dated Brent price was almost $3.20/bbl lower than the prior week, which is the sharpest weekly drop in price since October 2016. The downward trajectory in price has been driven by market perception that Saudi Arabia and Russia will increase production in H2 2018. Further pressure is put on crude prices as US production grows while oil demand is being hampered by higher prices. Last week the EIA announced US domestic crude production had hit a new record high, just short of 10.8 mb/d. The average US gasoline pump price was almost US$3/gallon, which compares to US$2.40/gallon a year ago.