The oil market fell sharply last week. North Sea Dated crude’s weekly average fell US$2.68/bbl to US$72.55/bbl in the week to 6 August. Demand concerns rose as several Asian countries tightened Covid-19 restrictions, including China which is experiencing the highest number of cases since early 2020. However, oil product prices fell less as US and European demand continued to increase, as restrictions in these regions eased further. The tighter oil balance in 2H 2021 is still expected to provide price support. Middle Eastern political tensions also limited the price falls last week. Our ex-RVO global composite refining margin rose US$0.81/bbl to US$4.48/bbl, the sixth consecutive weekly increase, as oil prices fell rapidly. The rise was driven by margins in the US Gulf Coast, Europe and the Mediterranean, and the continued global strength in gasoline cracks.