Global products market weekly: Margins firm as product cracks held its gains against lower oil prices

The oil market fell in the week on a weaker oil demand outlook as China steps up its lockdown measures in a bid to control the widening spread of Covid. Potentially more sanctions on Russia by the West and historical low US crude inventory levels added to mid-week strength. The US later announced its intention for a 1 million b/d SPR release for the next six months from May, placing a cap on price increases last week. North Sea Dated crude’s weekly average declined by US$10.91/bbl, in the week ended 1 April. Our ex-RVO global composite refining margin rose by US$2.08/bbl to US$18.39/bbl. Margins were supported by an increase in light and heavy distillates cracks, while middle distillates softened from very strong levels. Weekly margins were at US$13.94/bbl above the five-year historical average for the same week.