Global products market weekly: Margins firm as gasoline cracks price above distillates

The oil market gained by over US$2/bbl at the start of the week, but outright prices ended the week flat signalling slightly weaker sentiment. Prices rallied as US crude oil inventories remained flat and a higher-than-expected increase in China’s industrial output. Exports from Sudan were impacted owing to pipeline issues, while both Saudi and Iraq exports were reported lower. However, a further increase was restricted as the US FED kept its interest rate unchanged, while market sentiment focused on expectations of higher Russian crude supply amid a surge in Ukraine drone attacks on Russian refineries. North Sea Dated crude’s weekly average increased by US$1.46/bbl, in the week ended 22 March. Our ex-RVO global composite refining margins decreased by US$0.23/bbl to US$8.25/bbl, despite gains in gasoline cracks across all the markets as distillates eased and freight rates rose. Weekly margins were US$3.43/bbl above the five-year historical average for the same week (excluding 2022).