Global product markets weekly: Margins eased as demand concerns resurface

The oil market maintained the previous weeks gains. North Sea Dated crude’s weekly average rose by US$0.92/bbl to US$65.46/bbl in the week to 23 April – a five week high. Prices were mixed through the week as the market grappled with stronger economic data in the US and Europe but ongoing demand concerns in Asia. An unexpected build in US crude inventories was offset by stronger US gasoline demand and US unemployment data recording a 13-month low, spurring hopes of further economic and fuel demand recovery. Prices remained broadly steady by the weeks close. Support from growing vaccine programmes, stronger European PMI data and reduced Libya supply was capped by demand concerns over record coronavirus cases in India and a third state of emergency in Japan. Our global composite refining margin declined US$0.24/bbl to US$4.16/bbl. Margins declined across all US and European regions but Asian and Middle East margins strengthened as Dubai’s underlying discount to Brent widened