Global products market weekly: Margins rise as heavy maintenance continues

The oil market softened at the start of the week amid concerns over the delay in timing of rate cuts by the Fed amid higher US inflation coupled with higher US crude oil inventories as refinery maintenance extended. However, prices firmed towards the end of the week as data showed money managers raised their net long positions in crude futures and options as market sentiment increasing priced in expectations that OPEC+ would extend output cuts through Q2 2024. North Sea Dated crude’s weekly average declined by US$0.57/bbl, in the week ended 1st March. Our ex-RVO global composite refining margins increased by US$0.71/bbl to US$8.35/bbl, owing to a rise in light distillates cracks in Asia, the Middle East and Europe. Weekly margins were US$4.02/bbl above the five-year historical average for the same week (excluding 2022).