Global products market weekly: Margins firm as distillate cracks find floor on US stock draws

The oil market rebounded at the start of the week, but the strength dissipated in the second half of the week as banking fears in the US resurfaced and concerns continued over the negotiations to raise government debt ceiling. The US dollar strengthened because of the financial uncertainty, and oil prices fell because of both US dollar strength and fears of a US recession. North Sea Dated crude’s weekly average rose by US$1.54/bbl, in the week ending May 12th. Our ex-RVO global composite refining margin strengthened by US$0.67/bbl to US$5.50/bbl. Weekly margins were at US$2.44/bbl above the five-year historical average (excluding 2022) for the same week.