Global products market weekly: Supply-side concerns and demand optimism supported cracks

The oil market rose for five consecutive days, recovering its losses from the previous week, with the recent strong rebound in Chinese domestic travel injecting optimism in the oil demand outlook. US inflation data fell to 6.5%, leading to expectations of slowing interest rate hikes moving forward, coupled with a weaker dollar in the week, providing strength to oil prices. North Sea Dated crude’s weekly average increased by US$2.66/bbl, in the week ended 13 January. Our ex-RVO global composite refining margin rose by US$1.80/bbl to US$12.83/bbl, as global light and middle distillate cracks were resilient against sharp increases in crude prices. Weekly margins were at US$10.42/bbl above the five-year historical average for the same week.