Global products market weekly: Pressure on margins as inventories rise, global product flows stagnate

The oil market trended lower against a positive China recovery outlook as increased US inflation data led to expectations of further US Federal interest rate hikes towards the end of the week. US crude inventories rose as well, in addition to further plans to release 26 million barrels from the US SPR reserves, countered Russia’s decision to cut production. North Sea Dated crude’s weekly average rose by US$1.16/bbl, in the week ended 17 February. Our ex-RVO global composite refining margin weakened by US$1.39/bbl to US$10/bbl, weighed down by weakness in jet cracks. Weekly margins were at US$4.12/bbl above the five-year historical average for the same week.