Global products market weekly: Volatility extends as markets contend with impact of Omicron and OPEC+’s decision

The oil price fell due to the large degree of uncertainty surrounding the new variant Omicron, leading to heightened market uncertainty and increased volatility. OPEC+’s decision to stick to its output increases against market expectations and its subsequent open stance on production adjustments in the near-term added volatility to prices. North Sea Dated crude’s weekly average declined by US$8.40/bbl, in the week ended 3 December. Our ex-RVO global composite refining margin rose by US$0.23/bbl to US$3.22/bbl. Margins recovered marginally with product cracks regaining lost grounds after digesting news around Omicron. Weekly margins were US$0.88/bbl above the five-year historical average for the same week.