Global product markets weekly: Global composite margin broke the five-year low amid weak fuel oil cracks

Markets are craving for bullish stories. Front month Brent and WTI last week jumped by 8% and 5% respectively, steepening the backwardation of both crudes. Escalating geopolitical drones-related conflicts in the Middle East are supporting the crude markets. Leaders of China and US are expected to meet in the upcoming G20 Osaka summit, sending positive signal of a potential ease on Sino-US trade tensions. Right after the summit, OPEC meeting will be ready to make a decision on oil cut extension. Meanwhile, concerns over global economy slowdown are mitigated as Fed is expected to cut rates and ECB is set to ease guidance by September. The oil market is set to be volatile in the following week, any downside stories from above events may erase the gains last week.