Global products market weekly: Tightness in distillates hoist cracks as oil prices rally above US$90/bbl

The oil market softened early in the week as markets were rattled by speculation around the US Federal bank’s move to address inflationary pressures through hiking interest rates in March. Oil prices regained grounds later in the week, as supply concerns weighed in with heightened geopolitical tensions between Russia and the West, which could potentially threaten gas supply from Russia to Europe. Escalating crossfires between Yemen’s Houthis and the UAE added to supply concerns in the Middle East, contributing to the price push. OPEC+ will be meeting on February 2, with the market broadly expecting the group to stick to its plan to increase output. North Sea Dated crude’s weekly average rose by US$1.31/bbl, in the week ended 28 January. Our ex-RVO global composite refining margin were up by US$0.29/bbl to US$4.38/bbl with recovering gasoline cracks. Weekly margins were at US$2.50/bbl higher than the five-year historical average for the same week.