Global products market weekly: Margins end four consecutive weeks of decline as diesel cracks strengthen

The oil market trended higher in the week, as China’s purchasing managers’ index (PMI) in February jumped to a decade high of 52.6, injecting confidence in China’s oil demand recovery ahead. Strength in China demand overshadowed record high US crude inventories and expectations of further US interest rates hikes in the near-term. North Sea Dated crude’s weekly average rose by US$1.85/bbl, in the week ended 3 March. Our ex-RVO global composite refining margin strengthened by US$1.14/bbl to US$8.99/bbl as middle distillates cracks recouped its losses on slowing Europe imports. Weekly margins were at US$5.04/bbl above the five-year historical average for the same week.