Global product markets weekly: Light product stock increases further depressed margins

The oil market recovered from the sell-off at the end of the previous week but remained within the same wide trading range. Further positive news on potential Covid-19 vaccines encouraged more short covering of positions. The North Sea Dated weekly average rose by US$0.81/bbl to US$42.85/bbl. The short-term outlook for oil demand in the western hemisphere remains at further risk. It is still assumed that OPEC+ will rein back their proposals for output increases at the start of next year, when they meet at the end of this month, despite no formal recommendation being made at this week’s monitoring committee meeting.