Global products market weekly: Atlantic Basin gasoline strength fuelled rise in global margins

The oil market fell last week, as US crude inventories rose, and on confirmation that talks will resume on the lifting Iranian sanctions. OPEC+ agreed to maintain the planned production restraint, as widely expected. North Sea Dated crude’s weekly average fell by US$1.49/bbl in the week ended 5 November. Our ex-RVO global composite refining margin fell by US$0.56/bbl to US$6.14/bbl, extending weakness from last week. A decrease in Brent prices led middle distillate cracks to correct further from its run up in early October. HSFO cracks saw sharp declines globally as demand from the utilities sector slowed, as gas to oil switching is much lower than market consensus. Weekly margins were at US$2.34/bbl above the five-year historical average for the same week.