Global products market weekly: Banking troubles crashes crude price, supporting refining margins

The oil market went on a wild ride as fears of a banking led financial crisis oscillated through the week, with the shutdown of Silicon Valley Bank (SVB), and subsequent trouble with Saudi National Bank denying additional investments to Credit Suisse, leading to rescue by the Swiss Central Bank and its potential acquisition. Hopes of a Chinese demand recovery to support crude prices took a distant backseat, while market players continue to look for signals to the US Federal Reserve’s decision on interest rates next week. North Sea Dated crude’s weekly average declined by US$8.47/bbl, in the week ended 17 March. Our ex-RVO global composite refining margin increased by US$1.01/bbl to US$9.21/bbl, as positive margins in the US offset losses in other regions. Weekly margins were at US$4.85/bbl above the five-year historical average for the same week.