Regional product markets short-term outlook January 2022

This update incorporates all of the regional crude runs and product-by-product supply-demand balances through to end-2023 on a regional level. Our demand view has remained largely unchanged as the impact to personal mobility from the Omicron Covid-19 variant remains in line with our previous expectations as restrictions remain targeted as opposed to the widescale lockdowns seen in 2020 and 2021. Atlantic basin fundamentals tightened further in December, despite US refinery utilisation rates touching 90% as European runs have remained low. Strong gasoline demand despite higher Omicron cases has kept fundamentals tight. Higher runs will be needed as demand recovers into Q1 2022 given tight transport fuel stocks across the globe.