Global product markets weekly: stronger gasoline cracks strengthen composite refining margin

North Sea Dated was traded in a tight range during the week and edged higher to US$44.76/bbl on average with bullish investor sentiment on financial markets and the weak US dollar. In the prompt crude market, commercial crude storage in the ARA hub dropped week-on-week with reduced crude imports. Allocations of Saudi and Iraqi crude to Europe will remain limited in September, adding some support to Brent prices. However, concerns around a second wave of lockdowns with the resurgence of coronavirus infections and escalating US-China tensions weakened the demand outlook, capping the price strength. Both the IEA and OPEC lowered their demand forecasts due to a softer economic recovery and persistent weakness in the aviation sector.