Global product markets weekly: Shockwaves spread from the Suez Canal blockage

The oil market fell further last week, as short-term price volatility increased. North Sea Dated crude’s weekly average fell by US$3.59/bbl to US$62.83/bbl in the week to 26 March. The overall decline in the weekly average price masked large daily price swings. Uncertainty of the duration and impact that the closure of the Suez Canal will have, coupled with increasing fears that oil demand in Europe and Asia may fail to meet recent expectations created a volatile price environment. OPEC+ meet again this coming week to set production quotas for May. Market expectations have risen that the group will once again keep production quotas broadly unchanged, due to the increases in Covid-19 cases in Europe and parts of Asia while vaccination rates in these regions remains slow. Our global composite refining margin fell US$0.25/bbl to US$2.97/bbl, as Middle East and Singapore margins eased further due to the weakening product demand and narrower Dubai crude differential