Global products market weekly: Oil price increases and ample distillate supply weighed on cracks

The oil market recovered its losses from last week, as Chinese buyers returned to secure large volumes in the market, injecting confidence on an economic led demand recovery. Disruptions to loadings at the Turkey’s Ceyhan oil terminal provided price temporary uplift, while an announcement by Russia that it will cut its oil production by around 5% of its output led to a surge in cracks on Friday. North Sea Dated crude’s weekly average increased by US$0.18/bbl, in the week ended 10 February. Our ex-RVO global composite refining margin weakened by US$2.91/bbl to US$8.71/bbl, as sufficient middle distillate supply led cracks to weaken. Weekly margins were at US$5.01/bbl above the five-year historical average for the same week.