Global products market weekly: Crude tumbles as demand fears grow, supporting refining margins

The oil market weakened over the week due to concerns about sluggish global demand and worries about recession in the USA. Moreover, news about Libya's oil production returns as political parties reached a deal on appointment of a new governor of the central bank also led to a downward pressure on oil prices, previously supported by potential for sustained loss of Libyan crude exports. However, larger-than-expected EIA crude inventory withdrawal coupled with announced delay in the return of OPEC+ barrels from October to December provided some support to the prices later in the week. North Sea Dated crude’s weekly average declined by US$5.83/bbl, in the week ended 6th September. Our ex-RVO global composite refining margins increased by US$0.45/bbl to US$4.01/bbl, reversing the ongoing week on week declines over the past month due to a sharp decline in crude oil prices. Weekly margins were at US$4.39/bbl, lower than the five-year historical average for the same week (excluding 2022).