Global products market weekly: Refining margins ease as distillate cracks hit two-month lows

The oil market weakened through the week after the rally in prices at the end of last week ahead of OPEC+ announcement was not sustained. With an extension to cuts through Q2 2024 already priced in and Russia’s additional cuts providing no support to outright prices, sentiment focused on China after it announced an economic growth target of 5% in 2024. This was broadly viewed by the market as aspirational without any further stimulus packages, while crude imports into China continue to trend lower than previous months suggesting lagging demand growth. Despite the fall in outright prices, North Sea Dated crude ’s weekly average rose by US$0.65/bbl in the week ending 8 March 2024. Our ex-RVO global composite refining margin declined by US$0.80/bbl to US$7.50/bbl, as weekly margins were at US$3.36/bbl above the five-year historical average for the same week (excluding 2022)