Global product markets weekly: US gasoline strength offset margin weakness in other regions

The oil market rise accelerated last week, reaching the highest amount since October 2018. North Sea Dated crude’s weekly average rose by US$2.28/bbl to US$75.37/bbl in the week to 25 June. Refinery demand for crude oil continued to draw down Atlantic-basin inventories, while economic data, particularly in the US, signalled that further oil product demand improvements are likely. Adding to the optimism, the US President announced a bipartisan agreement had been agreed on the US fiscal stimulus package. Meanwhile, the immediate prospect of Iranian crude returning to global markets diminished as talks had so far failed to reach an agreement. Our ex- RVO global composite refining margin remained almost unchanged from the previous week’s four-month low at US$1.00/bbl. Softer middle distillate cracks weighed on European and Asian margins, while the US margins broadly rose on higher gasoline values.