Global products market weekly: Middle distillates continue to slide as inflationary concerns persist

The oil market eased during the week owing to the de-escalation of tensions between Iran and Israel. Further, crude prices declined due to lower-than-expected US Q1 GDP growth, higher inflation and the expectation of further delays in the US Fed cutting interest rates. Crude prices rallied at the end of the week as flat prices rose US$2/bbl, reflecting strength in the spot market for Brent barrels. A further decline in US crude inventories and Iraq’s announcement of a year-long export reduction added further support. Iraq. North Sea Dated crude’s weekly average declined by US$1.16/bbl, in the week ended 26th April. Our ex-RVO global composite refining margins contracted by US$0.76/bbl to US$5.59/bbl as middle distillates cracks in NWE, Asia and the Middle East continued the downward trajectory. Weekly margins were US$1.87/bbl above the five-year historical average for the same week (excluding 2022).