Global product markets weekly: margins up as maintenance drags on

North Sea Dated’s weekly average fell for the first time in nine weeks during the week commencing 25 February 2019, falling approximately $2.20/bbl to average $66.50/bbl. The supply side is still structurally posing an upside risk to prices, as OPEC+ cuts have seen relatively strong compliance. Also, key heavy/sour crude markets are also at the forefront of the market’s calculus, such as Venezuela’s turmoil and Middle Eastern grades constrained market availability. The main downside factor this week was demand, as refinery maintenance across the Northern Hemisphere was quite strong. This weighed on the global benchmark, and consequently most crudes across the world. The one notable exception was WTI (which only slightly weakened), as the US experienced a significant crude stock draw.