Global products market weekly: Margins slump as product cracks weaken against higher crude

The oil market was supported by a force majeure on Russian gas supply to Europe amid the Nord Stream 1 maintenance and concerns if supply will resume. The higher-than-expected European Central Bank interest rate hike, recession risk, and increased China Covid cases continue to weigh on the oil demand outlook. Rising US gasoline inventories and recovery in Libyan crude supply led prices soften by end of the week. North Sea Dated crude’s weekly average increased by US$2.60/bbl in the week ended 22 July. Our ex-RVO global composite refining margin weakened by US$7.75/bbl to US$9.69/bbl, reaching four consecutive weeks of declines, on the back of hefty losses in light and middle distillate cracks and strongly recovering Urals price. Weekly margins were at US$5.49/bbl above the five-year historical average for the same week.