Global products market weekly: Margins fall to lowest since July as middle distillate cracks extend losses

The oil market slumped through the week. Despite China’s further easing of covid restrictions, demand concerns remerged from weakener economic indicators and the slower growth outlook, building bearish expectations ahead of the US Federal meeting. The announcement of a US$60/bbl price cap on Russian oil had little effect on prices. Supply from Russia was expected to continue at roughly similar volumes with the price cap set above the current traded price. North Sea Dated crude’s weekly average weakened by US$5.18/bbl, in the week ended 9 December. Our ex-RVO global composite refining margin weakened by US$0.47/bbl to US$12.31/bbl as cracks fell across the barrel for all three regions. Weekly margins were at US$10.29/bbl above the five-year historical average for the same week.