Global products market weekly: Market tightness bolsters crude price meanwhile transport fuel cracks tumble

The oil market strengthened for the second consecutive week as positive economic data and supply side concerns tightened the market and boosted sentiments. Positive US economic data such as robust retail sales and a decline in unemployment claims – easing fears of recession, contributed to the price increase. Meanwhile, sentiments in the oil market are being influenced by the ongoing ceasefire negotiations in Gaza and the complicated geopolitical situation in the Middle East. However, increase in EIA crude oil inventory over the week added downward pressure to the oil prices. North Sea Dated crude’s weekly average soared by US$3.49/bbl, in the week ended 16th August. Our ex-RVO global composite refining margins declined by US$1.43/bbl to US$4.87/bbl due to fall in all product cracks across all major regions prompted by the sharp recovery in crude oil prices this week. Weekly margins were at US$3.81/bbl lower than the five-year historical average for the same week (excluding 2022).