Global product markets weekly: US Gulf Coast heavy crude margins sink on Venezuela production problems

For the week commencing 4 June, weekly average crude prices continued to trend lower for almost all regional benchmarks, with the exception of Maya. The weekly average Dated Brent price fell another $1.40/bbl, meaning prices were at new a five-week low. The latest EIA data show another rise in US crude production while the market continues to assess the risk of increased production from Russia and Saudi Arabia ahead of the OPEC meeting later this month in Vienna. Maya crude prices were impacted by the decision of Pemex to increase the OSP by almost US$2/bbl to the US for July delivery while cutting prices to Asia and Europe, reflecting the fall in Venezuelan supplies.