Global products market weekly: China’s expansionary moves injects market optimism

The oil market rose on hopes of a China demand recovery as China’s central bank lowered short-term lending rates and issued a third batch of crude import quotas, to support stronger economic growth. However, gains were insufficient to offset early week lows and as the US Federal Reserve looks to raise interest rates in the near-term and US crude stock increased. North Sea Dated crude’s weekly average fell by US$2.30/bbl, in the week ended 16 June. Our ex-RVO global composite refining margin rose by US$1.71/bbl to US$9.60/bbl, as lower crude prices led to most product cracks to increase across the barrel. Weekly margins were at US$2.86/bbl above the five-year historical average for the same week (excluding 2022).