Global product markets weekly: Refining margins mixed amid weak middle distillates cracks

Oil prices were range-bound last week after the risk premiums over US-Iran tensions were removed from the prices. The weekly average of North Sea Dated decreased by US$3.65/bbl to US$63.88/bbl. The “phase-one” trade deal between China and the US was signed last week, lifting markets’ expectations on improved demand growth (link to our latest Inform on the trade deal). The optimism on demand growth was limited as all tariffs remained in place, albeit some US tariffs on Chinese goods were lowered. Oil prices saw mild gains as US crude inventories declined by 2.5 million barrels week-on-week due to higher exports.