Global products market weekly: Refining margins find their summer floor, as diesel gathers support as gasoline falters

The oil market continued to trend lower from the start of the week as the market removed risk premium from crude prices owing to ease of geopolitical tensions in Middle East and ongoing talks of potential ceasefire in Israel and Hamas. Moreover, weaker US gasoline and diesel demand data put downward pressure on crude prices. Expected delay in US FED interest rate cuts also pressured crude prices. However, drop in US EIA crude inventory data provided some support to crude prices. North Sea Dated crude’s weekly average declined by US$2.86/bbl, in the week ended 10th May. Our ex-RVO global composite refining margins remained range bound at US$5.72/bbl, as the recovery in global distillates cracks was offset by drop in gasoline cracks. Weekly margins were at US$3.07/bbl above the five-year historical average for the same week (excluding 2022).