Global product markets weekly: US margins surged for a fourth week

The oil market continued to rebound last week, from the sharp decline two weeks ago. North Sea Dated crude’s weekly average rose US$3.41/bbl to US$75.23/bbl in the week to 30 July. The oil price rise was driven by falls in both crude and product inventories in the US as demand continued to increase. The US Federal Reserve indicated that monetary policy would remain loose, despite short term inflationary fears. The dollar weakened consequently, which also boosted oil prices last week. The spread of the Covid-19 Delta variant remains a downside risk to outright prices, particularly in Asia, Africa and South America, where vaccination rates are low. Our ex-RVO global composite refining margin rose US$0.38/bbl to US$3.64/bbl, driven by margins in the US and the Mediterranean, and the global strength in gasoline cracks.