Global products market weekly: Subdued demand recovery and recovering product inventories sends cracks lower

The oil market fell through the week as market participants struggled to find bullish cues from China’s reopening to substantiate its earlier upward price momentum. This is despite China’s PMI index released earlier in the week showing a slower pace of contraction. A significant build in crude and products inventory in US weighed on prices further. North Sea Dated crude’s weekly average fell by US$3.52/bbl, in the week ended 3 February. Our ex-RVO global composite refining margin weakened by US$4.62/bbl to US$11.38/bbl, amid weakness in middle distillate cracks. Weekly margins were at US$8.02/bbl above the five-year historical average for the same week.