Global product markets weekly: Global refining margin jumped on strong product cracks

Bullish stories finally made their way to the markets over the weekend. Both Brent and WTI front month reacted positively during Monday Asia opening. Much to the markets’ relief, Trump and Xi agreed to return to negotiation table once more during G20 Osaka summit. But the Sino-US trade conflicts are not going to end here. Crude markets are holding up today as OPEC+ is expected to extend its 1.2 million b/d production cut by another six months, with Iran exempted from the deal due to sanctions. Apart from the macro environment, keen buying interests from Asia for August-loading pushed up the weekly average of the dated North Sea by $2.2/bbl last week. Strong light-ends demand from US and Europe also supported the dated North Sea price.