Global products market weekly: Margins falter as soaring oil prices roiled through markets

The oil market skyrocketed above US$100/bbl with news of Russia/Ukraine conflict. Increased sanctions from US and EU have avoided energy supplies, but market players contend with heightened risk and uncertainty on credit and logistic complications when dealing with Russian origin cargoes. North Sea Dated crude’s weekly average rose by US$3.01/bbl, in the week ended 25 February. Our ex-RVO global composite refining margin fell by US$0.48/bbl to US$3.73/bbl. Margins weakened as Brent prices rose to 2014 levels on the threats of supply shortages, overshadowing strength in product cracks which was supported by tightness in fundamentals. Weekly margins were at US$0.42/bbl above the five-year historical average for the same week.