Global products market weekly: Margins decrease as US supply recovers, strong NS Brent cap Europe gains

The oil market fluctuated due to heightened tensions of a Russia/Ukraine conflict, and news of a possible positive outcome in the Iran nuclear deal negotiations currently underway in Vienna. If a deal is reached it would bring additional supply to the market. North Sea Dated crude’s weekly average increased by US$1.53/bbl, in the week ended 18 February, as talk of sanctions on Russia highlighted the risk to Europe’s energy supply. Our ex-RVO global composite refining margin fell by US$1.27/bbl to US$4.21/bbl as US margins erased recent gains with refineries returning and European margins continued to weaken as feedstock prices increased further. Weekly margins were at US$1.08/bbl above the five-year historical average for the same week.