Global products market weekly: US interest rates move lower, but will it be enough to stimulate demand growth?

The Oil Market strengthened over the week, reversing recent declines, boosted by optimism from a 0.5% US interest rate cut and a drop in IEA crude inventories to a 12-month low. Oil prices also received some support from rising tensions in the Middle East and concerns around region wide escalation. However, weak demand from China’s slowing economy continued to weigh on oil prices. North Sea Dated crude’s weekly average increased by US$2.74/bbl, in the week ended 20th September. Our ex-RVO global composite refining margins decreased for the second consecutive week by US$0.27/bbl to US$3.21/bbl amid decline in diesel and jet fuel cracks across major regions. Weekly margins were at US$4.97/bbl lower than the five-year historical average for the same week (excluding 2022).