Global product markets weekly: Margins recover despite weaker gasoline

The oil market maintained the previous weeks gains. North Sea Dated crude’s weekly average rose by US$1.21/bbl to US$66.67/bbl – a six week high. Prices rose as the reported rate of global vaccinations, positive US economic data combined with the proposed multi-trillion dollar stimulus package outweighed rising Covid cases in India, Japan and Brazil. The decision by the OPEC+ group to proceed with the proposed increase in supply also supported the markets. The impact has also been countered by strong Chinese demand and large crude stock draws which is promoting independent Chine refiners to begin restocking for June and July refining runs. Our global composite refining margin increased US$0.30/bbl to US$4.46/bbl. Margins increased across all regions as stronger distillate cracks in the Atlantic basin offset weaker gasoline and fuel oil cracks, while Asian and Middle East margins strengthened as Dubai’s underlying discount to Brent widened by a further US$0.84/bbl.