Global products market weekly: Volatility in crude and products keep margins rising

The oil market increased early in the week as OPEC cautioned of a tightness in supply ahead without Russian volumes, amid a reported fall in Russian oil and gas condensate production below 10 million b/d, its lowest since July 2020. Fundamentals were mixed with a demand recovery from the easing of lockdown measures in China, while the US saw a 9 million barrels build in oil inventories, resulting in further price volatility. North Sea Dated crude’s weekly average increased by US$0.70/bbl, in the week ended 14 April. Our ex-RVO global composite refining margin rose by US$0.63/bbl to US$22.74/bbl, on the back of global increases in diesel/gasoil cracks, sustaining a four consecutive week increase on margins. Weekly margins were at US$18.38/bbl above the five-year historical average for the same week.