Global product markets weekly: Higher crude prices and weakening fuel oil cracks dragged down refining margins

The fear of recession fuelled high volatility in the oil market last week. The North Sea Dated weekly average increased slightly by US$0.88/bbl to US$58.13. On 13 August, President Trump postponed implementing a new round of tariffs from 1 September to 15 December. Front-month prices for WTI and Brent jumped following the news, easing market concerns of a scenario in which no trade agreement would be reached. The next day, an inversion in the US government bond yield curve, which is normally regarded as a signal of recession, triggered a sell-off in the markets and erased the earlier gains. The oil market rebounded slightly after positive comments from President Trump on Sino-US trade talks and robust US economic data in the later part of the week.