Commodity market report
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Global product markets weekly: Refinery margins soar in the wake of Harvey

Global product markets weekly: Refinery margins soar in the wake of Harvey

Report summary

For the week commencing 28th August, almost all of our benchmark gross refinery margins strengthened following the widespread disruption in the aftermath of Hurricane Harvey. US domestic crude prices weakened while Dated Brent increased to its strongest level since late May. The WTI – Brent differential widened to almost $6/bbl last week. This is the steepest discount since July 2015, as the market expects a domestic crude stock build following USGC refinery outages. Brent prices were supported by lower US crude production on the USGC. At its peak, 430 kb/d of US Gulf crude production was offline, but as of 3 September, shut ins had reduced to 100 kb/d.

In the slide pack, available in the Downloads section, weekly changes in prices and refinery margins are presented for six key pricing points around the globe:
  • Northwest Europe
  • Mediterranean
  • US Gulf Coast
  • New York Harbour
  • Middle East Gulf
  • Singapore

What's included?

This report includes 2 file(s)

  • Weekly Report 4SEPT17.pdf PDF - 1.42 MB
  • Weekly historical margins 4SEPT17.xls XLS - 280.50 KB


The short-term outlook for the refining sector is influenced by many factors: crude oil price, demand developments, new projects, refinery maintenance and refinery closures to name a few. The relationship between regions trading in crude and refined products requires a global perspective to understand how each region will be affected.

This weekly outlook report provides a regional update of historical pricing and margin performance. This report also predicts supply and demand trends, and forecasts prices for crude oil and refined products for the next 12 to 24 months.

The weekly short term outlook report is based on in-depth research about product supply and demand and helps refiners, traders and buyers determine product trading strategies and how to best optimise assets.

With over 20 years of experience in the refining industry, Wood Mackenzie is a trusted global leader with a reputation for producing consistently reliable information. Our senior analysts are based in the markets they analyse. They use detailed research data to forecast, benchmark and recognise trends that will help both new and existing participants identify opportunities and avoid risks.

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