Global product markets weekly: Gasoline cracks surge on tighter stocks

The dated Brent price rose again last week, increasing by $1.80/bbl to bring the weekly average to $71.30/bbl. The risk of supply disruption from Libya seems to be growing and there is unrest in Sudan and Algeria. There are still concerns about the weak economy and this is putting a cap on prices although recent economic data seem less bearish. The global composite refinery margin strengthened last week, rising to $4.50/bbl. Margins strengthened in the key pricing hubs, mainly due to stronger gasoline cracks. The upside was limited by weaker crack spreads for LPG, naphtha and fuel oil in most regions. The composite margin is still weak and remains below the five-year range.