Global products market weekly: Margins soften as gasoline inventories surge, oil sentiment firms

The oil market rose for the fourth consecutive week, boosted by supply constraints and stronger market sentiment that supply in the physical market was tight as demand remained resilient despite the spread of the Omicron variant. A weaker dollar also supported higher oil prices, as the US Federal bank contemplated interest rate hikes. Discussions of a Chinese SPR release around the Lunar New Year holidays late in week capped price gains. North Sea Dated crude’s weekly average was up by US$3.51/bbl, in the week ended 14 January. Our ex-RVO global composite refining margin fell by US$0.40/bbl to US$4.63/bbl, driven by weakening gasoline cracks as gasoline inventories in US and Europe built. Weekly margins remained US$2.27/bbl higher than the five-year historical average for the same week.