Global product markets weekly: Higher refinery run rates stalled margin increases

The oil market surged higher, ending two weeks of rangebound prices. North Sea Dated crude’s weekly average rose by US$3.01/bbl to US$58.15/bbl in the week to 6 February. Positive US economic data on factory orders and employment, together with the US Senate advancing President Biden’s US$1.9 trillion fiscal stimulus boosted optimism that oil demand will increase in the next few months. OPEC+ made no change to their production quotas at last week’s monthly meeting, despite the surging prices. However, concerns remained for Asian demand due to travel restrictions during this week’s Lunar New Year. The US dollar strength was largely ignored as crude oil prices rose to the highest amount since February 2020. Our global composite refining margin was unchanged at US$2.08/bbl.