Global product markets weekly: Easing tensions on energy prices moderates margins

The oil market rose with tight US crude inventory and strong demand for products, while there were underlying concerns of a sustained demand recovery to pre-pandemic levels as Covid cases start to rise. Prices eased slightly as China orders for more coal production to curb spike in energy prices. North Sea Dated crude’s weekly average rose by US$0.77/bbl in the week ended 18 October, with OPEC+ keeping a firm stance despite further calls to raise crude output. Our ex-RVO global composite refining margin fell by US$0.81/bbl to US$6.68/bbl, ending three consecutive weeks of increases. Margins edged lower as easing tensions on the broader energy market capped further hikes in middle distillate cracks. Weekly margins were at US$3.11/bbl above the five-year historical average for the same week.