Global products market weekly: French refinery workers strike a further blow to fuel supplies

The oil market rose strongly last week following the OPEC+ decision to cut production targets by 2 million b/d from next month. Although many member countries are already producing below target the size of the move will reduce supplies and the move signals the group’s commitment to support prices in response to weakening economic outlooks. North Sea Dated crude’s weekly average rose US$7.38/bbl, in the week ended Oct 7. Our ex-RVO global composite refining margin strengthened US$4.13/bbl to US$17.12/bbl. All regions recorded higher margins, but Atlantic basin values led the global increase as concerns mounted of further tightness in middle distillate supply. Weekly margins were at US$12.54/bbl above the five-year historical average for the same week.