Global product markets weekly: Global refining margin weakens as most product cracks soften globally

The weekly average of North Sea Dated increased by US$3.57/bbl to US$58.68/bbl. As new infection cases in China continued to decline and China cut its benchmark lending rate on 20 February, oil prices recovered as concerns over demand growth slowdown eased slightly. The recent US sanctions on Rosneft Trading for “broking and transporting” crude oil for Venezuela raised markets' concerns over potential oil supplies reduction. We consider the new sanctions unlikely to have a significant impact on our already risked forecast for Venezuelan oil production in 2020 (link to our latest Insight on the event). Prospects of an early OPEC+ meeting in February faded as Russia showed reluctance in extending cuts, capping the recovery in oil prices. OPEC+ will meet at the already scheduled full ministerial meeting on 5-6 March.