Global products market weekly: Fuel oil strength provides fragile support to refinery margins

The oil market continued to fall sharply at the start of last week amid continued concerns that a global economic slowdown will lower demand, driven by a US banking crisis, but prices recovered in the later part of the week as the US Fed signalled it may slow or stop interest rate increases given the lower inflation and recent collapse of several US banks. North Sea Dated crude’s weekly average fell by US$7.63/bbl, in the week ended May 5th. Our ex-RVO global composite refining margin strengthened by US$1.46/bbl to US$5.75/bbl. Weekly margins were at US$2.51/bbl above the five-year historical average (excluding 2022) for the same week.