Global product markets weekly: Global composite margin stood above five-year average on strong gasoline and fuel oil cracks

The Sino-US trade negotiation story did not manage to cheer up the markets for long. Crude markets declined as OPEC+ extended its production cut for a longer-than-expected period, signalling an amply supply of crude in the markets. Meanwhile, concerns over global demand slowdown worsened as US and China read lower-than-expected PMI in June. The escalating uranium conflicts between US and Iran early last week also exerted additional pressure on global demand outlook, erasing the gains of crude market for the week ending 30 June. The weekly average of dated North Sea dropped by $2.16/bbl to $63.8/bbl. We expect the high volatility in the crude markets to be the main theme. With relatively strong product cracks in most of the regions except Mediterranean, the crude prices are expected to recover in the coming weeks.