Regional product markets short-term outlook July 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. For 2022, global crude runs remain broadly unchanged from last month's update. Although there is no major change from an annual perspective, stronger runs in Asia through H2 2022 have offset a downward revision to Q2 2022. Refinery supply has not increased to the level we expected in recent weeks despite high global refining margins. The global refining system remains distillate led, despite seasonal Atlantic basin summer gasoline travel demand. We maintain our view that some of the current tightness in global product markets will ease through H2 2022 as additional refinery supply slowly ramps up – mainly in the Middle East and Asia.