Global product markets weekly: Crude prices and margins weaken on the prospect of higher supply

For the week commencing 4 December, all refinery margins outside of Asia weakened. Crude prices also fell, with Dated Brent easing back from recent highs, although they maintained a weekly average over US$63/bbl. Prices came under pressure with reports that suggest the US rig count has increased and is at a two month high following a period of sustained oil prices. US crude stocks drew down for the second consecutive week, shedding almost 490 kb/d with the largest draw in PADD II. Crude stock levels in the US are now the lowest since January 2016.