Global products market weekly: Margins fall despite lower oil, gasoline reverses gains

The oil market fell on building inflationary pressures, as the US Consumer Price Inflation (CPI) index rose. Expectations that the US Federal bank will hasten the increase of interest rates to taper inflation, leading to a rise in the US dollar, weakened prices. OPEC had also revised their forecast for 2021 demand lower, in consideration of higher energy prices and inflation risks. North Sea Dated crude’s weekly average decreased by US$0.76/bbl in the week ended 12 November. Our ex-RVO global composite refining margin decreased by US$1.20/bbl to US$5.13/bbl, with sharp declines in refining margins in Europe and US. Margins came under downward pressure as gasoline erased its gains from last week, while fuel oil cracks continue to weaken. Weekly margins were at US$1.72/bbl above the five-year historical average for the same week.