Global product markets weekly: Atlantic-basin demand supports further strength in margins

The oil market rose last week, but the early-week recovery was almost erased by the sharp fall in prices in the latter half of the week. North Sea Dated crude’s weekly average rose US$0.21/bbl to US$76.27/bbl in the week to 16 July. News that an OPEC+ agreement may be reached to increase production levels through to the end of this year, following negotiations with the UAE over their base level output, weighed on prices towards the end of the week. On the demand side, the worldwide spread of the delta variant of Covid-19 heightened fears of tighter lockdown restrictions, particularly in regions with low vaccination rates. Our ex-RVO global composite refining margin rose US$0.57/bbl to US$2.31/bbl, led by margin strength in the US and Europe.