Global product markets weekly: Global Composite margin fell to four-month low

The oil market rose again last week, reaching a new weekly two year high. North Sea Dated crude’s weekly average rose by US$1.92/bbl to US$73.09/bbl in the week to 18 June. The improved refinery demand for physical crude added fundamental strength to the price rally which previously had mostly been driven by optimism of future demand. The US dollar strengthened after the US Fed signalled a more hawkish interest rate approach to combat inflationary pressures in the medium term. However, oil prices recovered strongly from the resulting mid-week downward price correction. Our ex- RVO global composite refining margin decreased US$0.34/bbl to US$1.06/bbl, a four-month low. Tighter crude markets in the last two weeks have continued to pressure margins.