Global product markets weekly: Gasoline strength leads global margins higher

The oil market remained rangebound, trading broadly within the previous two week’s range. North Sea Dated crude’s weekly average fell by US$0.28/bbl to US$55.14/bbl in the week to 29 January. Concerns increased that Asian demand would fall below expectations, particularly in China where authorities have urged citizens not to travel over the Lunar new year period. Expectations of improved demand in Europe were also tempered in the short term as a shortage of Covid-19 vaccine supplies became a political issue. A relaxation of lockdown restrictions in the US demand centres of California and New York fueled optimism that recent US gasoline demand increases are sustainable. Our global composite refining margin recovered US$0.16/bbl to US$1.99/bbl, from a five-week low.