Global product markets weekly update: Margins struggle as crude prices push higher

The dated Brent price pushed higher last week, increasing by $2.10/bbl over the previous week’s average. Background support for crude prices comes from tightened supply, with Venezuela and Iran exports affected by sanctions, and OPEC+ maintaining production cuts. The latest upward movement in prices came amid concern for Libyan crude output as the "Libyan National Army" moved forces against the government in Tripoli. Further support came from increased optimism over global trade following "constructive" trade talks between the US and China. The global composite refinery margin weakened last week, falling to $3.80/bbl. Margins have been negatively affected by rising crude prices and growing middle distillate stocks with gasoline being the only product to show stronger crack spreads. If crude prices stabilise, margins should increase next week with help from refinery maintenance in Asia, strikes in Europe and gasoline spec changes in the US.