Global products market weekly: Margins narrow as crude recovers, products supply lengthens

The oil market trended higher in the week as positive sentiment around China’s easing Covid measures bolstered prices, in addition to speculation of further cuts in OPEC+ production and relatively above market levels for the G7/EU price cap on Russian crude. Macroeconomic factors such as a weaker dollar, amid talks of a slowdown in future interest rate rises, also supported prices. However, North Sea Dated crude’s weekly average fell by US$1.28/bbl, in the week ended 28 November, as a weaker than expected recovery in European runs limited increases on physical NS Dated values compared with Brent futures. 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.