Global products market weekly: Distillates remain weak as fuel oil supports margins

The oil market eased in the week owing to renewed hopes of a potential cease-fire between Israel and Hamas. Moreover, weaker global economic data coupled with rise in US EIA crude inventory data also exerted downward pressure on the prices. North Sea Dated crude’s weekly average declined by US$2.34/bbl, in the week ended 3rd May. Our ex-RVO global composite refining margins increased by US$0.69/bbl to US$6.61/bbl. Weekly margins were at US$3.40/bbl above the five-year historical average for the same week (excluding 2022). Our ex-RVO global composite refining margins contracted by US$0.76/bbl to US$5.59/bbl as middle distillates cracks in NWE, Asia and the Middle East continued the downward trajectory. Weekly margins were US$1.87/bbl above the five-year historical average for the same week (excluding 2022).