Global product markets weekly: Margins - shaken, not stirred, by pipeline hackers

The oil market extended the recent rally last week, reaching a nine-week high. North Sea Dated crude rose by US$0.47/bbl to US$68.79/bbl in the week to 14 May. The shutdown of the Colonial Pipeline, following a ransomware attack, drove concerns that oil product supplies would run dry on the US East Coast, but the 2.5 million b/d product pipeline reopened on Thursday, easing these fears. Economic indicators, particularly in the US and China, continued to support prices. However, concerns increased last week that consumer and producer inflation may lead to tighter monetary policy and consequently a dampening of oil demand in the months ahead. Our global composite refining margin decreased US$0.24/bbl to US$3.98/bbl. Margins fell strongly in the Mediterranean as demand remained low, particularly in the east of the region.