Global products market weekly: Middle distillate cracks support margins despite weakness elsewhere

The oil market surged in the week, with Saudi Arabia hiking its July official selling prices (OSPs) for term cargoes, even as higher OPEC+ output announced last week struggled to quell concerns of tight supply over summer. Price volatility extended amid mixed signals from renewed lockdowns in Shanghai and Beijing suggesting weaker demand ahead, Norwegian workers strike possibly affecting oil ang gas output, and a rise in US commercial crude inventories. North Sea Dated crude’s weekly average increased by US$3.62/bbl, in the week ended 10 June. Our ex-RVO global composite refining margin rose by US$0.78/bbl to US$29.42/bbl. Margins were supported by global increase in jet and diesel/gasoil cracks. Weekly margins were at US$26.76/bbl above the five-year historical average for the same week.