Global products market weekly: Margins pressured as inflation dents demand outlook

The oil market extended losses early in the week, as US inflation numbers were higher-than-expected, adding to earlier speculations of a sharper increase in US Federal interest rates. Rising COVID cases and lower China crude import data in June weighed on Asian demand forecasts. Prices regained ground later in the week as US President Joe Biden’s visit to Saudi Arabia failed to produce immediate announcements of increased oil supply. North Sea Dated crude’s weekly average declined by US$6.04/bbl in the week ended 15 July. Our ex-RVO global composite refining margin fell by US$1.53/bbl to US$17.69/bbl, with weakening gasoline cracks globally. Weekly margins were at US$13.87/bbl above the five-year historical average for the same week.