Global products market weekly: Pre-holiday demand supports cracks, omicron fears linger

The oil market slipped as Omicron cases continued to rise rapidly and concerns that near-term supply growth would outpace demand. Despite growing demand fears and bearish mood, the market is pining hopes on early indications the milder strain will not impact demand recovery in Q1 2021. North Sea Dated crude’s weekly average fell by US$0.67/bbl, in the week ended 17 December. Our ex-RVO global composite refining margin increased by US$0.54/bbl to US$4.82/bbl, with higher margins across all regions as transport fuels demand remained positive ahead of the holiday season, while the weaker market sentiment capped crude prices. Weekly margins remained US$2.66/bbl above the five-year historical average for the same week.