Global products market weekly: Margins supported by strong USGC cracks, distillate stocks tighten further

The oil market softened early in the week as US-Iran negotiations resumed, with the prospect of increased supply entering the market easing concerns of supply tightness. High inflation data from the US added to the bearish sentiment. Oil prices were later supported by a fall in US crude oil inventories and OPEC forecasting stronger oil demand growth for this year. Higher Saudi OSPs for Asian bound March loading crudes also supported market sentiment of a stronger recovery in Asian demand in the coming months. North Sea Dated crude’s weekly average increased by US$2.80/bbl, in the week ending 11 January. Our ex-RVO global composite refining margin was broadly stable at US$5.48/bbl, with US gains offsetting losses in Europe and Asia. USGC margins strengthened on further declines in distillate stocks given the cold weather and CDU shutdowns. Weekly margins were US$2.19/bbl above the five-year historical average for the same week.