Global product markets weekly: US product stock builds reversed recent margin strength

The oil market retraced some of the recent gains last week. North Sea Dated crude’s weekly average fell by US$1.75/bbl to US$66.42/bbl in the week to 19 March, the first weekly decline in seven weeks. Concerns increased that European demand may be slower to increase than previously expected. Vaccination implementation is relatively slow, compounded in recent weeks by supply issues and the temporary suspension of the Astra/Zeneca vaccine. Meanwhile, lockdown restrictions tightened in France, with Germany likely to follow. Although the OPEC+ production restraint should tighten global crude balances in the months ahead, prompt supplies remain ample. US crude stocks have built significantly, while buying from Asian refiners remains quiet, due to the high outright prices, ample crude stocks and the upcoming refinery maintenance. Our global composite refining margin fell US$0.26/bbl to US$3.22/bbl, as US Gulf and Atlantic Coast margins retreated from the highest values since March 2020