Global products market weekly: Crude spikes on supply disruptions whilst light ends soften

The oil market gained in the first week of the year as outright prices drew support from growing confidence that the impact on demand from the Omicron variant will be less severe than initially expected. The market weighed supply concerns as protests in Kazakhstan led to fears of lower supplies, in addition to continued pipeline outages in Libya. Prices also gained as US crude inventories drew for the sixth consecutive week and data showed OPEC output only increased by 70kb/d in December, supporting market sentiment that supply remains tight. Saudi OSPs were however slashed for all Europe and Asia bound grades. North Sea Dated crude’s weekly average price rose by US$3.27/bbl, in the week ended 7 January. Our ex-RVO global composite refining margin fell by US$0.64/bbl to US$4.99/bbl, as gasoline and naphtha cracks weighed on margins. Weekly margins were at US$2.44/bbl above the five-year historical average for the same week.