Global product markets weekly: Margins strengthen; Brent price falters

For the week commencing 21 May, weekly average crude price movements were mixed across all the regions. The Dated Brent price fell away from near US$80/bbl after a heavy decline on Friday. This was primarily due to both Saudi Arabia and Russia discussing the potential move to increase crude oil production, in order to alleviate any future tightness caused by losses in supply from Iran and Venezuela. The latest data from the US show a crude stock build of 5.8 mbbls, but the first draw from Cushing in five weeks. The draw at Cushing eased the declined in WTI prices but the Brent-WTI differential remains wide at almost US$7.70/bbl.