Global products market weekly: Margins rebound on concerns over high gas prices, distillate supply

The oil market rose as Gazprom announced cuts to EU gas exports amid reported turbine problems. Supply concerns lingered despite the US indicating a 20-million-barrel release of oil from its strategic petroleum reserves (SPR), as weekly US inventories came in lower. An increase in US Federal interest rates led prices to fall temporarily on bearish demand outlook, but expectations of a limited increase in output from OPEC+’s meeting next week prompted higher prices. North Sea Dated crude’s weekly average fell by US$1.60/bbl, in the week ended 29 July. Our ex-RVO global composite refining margin rebounded by US$1.74/bbl to US$11.44/bbl, with US and Europe refining complexes seeking to recoup losses after four consecutive weeks of decline. Weekly margins were at US$6.83/bbl above the five-year historical average for the same week.