Global product markets weekly: Stronger margins despite increased demand concerns

The oil market rose to new post-pandemic highs on Wednesday last week, but by the end of the week had retraced most of these gains. North Sea Dated crude’s weekly average rose by US$2.12/bbl to US$55.24/bbl in the week to 15 January. A proposed US economic stimulus package worth US$1.9 trillion weakened the US dollar and initially supported oil prices. However, demand concerns increased as Covid-19 case numbers rose in Europe, US and now Asia. Further variant coronaviruses have also been recorded, adding to concerns that tighter travel restrictions may be necessary to reduce infection rates. Our global composite refining margin fell by US$0.56/bbl to US$2.05/bbl, the first weekly decrease following three consecutive increases.