Markets

While more-upbeat sentiment regarding a potential demand recovery helped to push oil futures prices higher over the week ending Dec. 16, it was not enough to recoup the rout suffered in the week ending Dec. 9.

The start of the Group of Seven Nations (G7)'s price cap on Russian crude and the EU's ban on imports of seaborne Russian oil on Dec. 5 did not offer the price support that some had earlier been anticipating.

Saudi Arabia set the Official Selling Price (OSP) for its heavy grade for buyers in the Far East at $1.25/bbl above the Middle-Eastern benchmark for Dec.—$1.20/bbl lower than the $2.45/bbl premium that had been in place for Nov.

Data from the Paris-based IEA showed that US cracking and coking margins plunged by $14.74-17.61/bbl from June to July after having increased in the previous three months

Traders were looking ahead to the OPEC+ meeting on Dec. 4 as well as the launch of the Group of Seven Nations (G7)'s price cap on Russian crude and the EU's ban on imports of seaborne Russian oil that both begin on Dec. 5.

More increases in coronavirus-infection rates in China during the week to Nov. 25 reignited worries that the country's economic recovery will be long and slow, keeping a lid on demand.

After talk of China loosening its coronavirus-related restrictions late in the week to Nov. 11, weekend figures showed a spike in infections in the country, which dampened petroleum sentiment early in the week ending Nov. 18.

Early in the week, traders were focused on tight restrictions related to China's zero-COVID-19 policy, which are bearish for demand sentiment.

The 2MM-b/d crude-production cut by OPEC+ was scheduled to have begun on Nov. 1, giving focus to supply tightness.

Strength in the US dollar has been a frequent source of price pressure for crude and refined products (as well as other commodities) in recent months as the US has been recovering from the economic doldrums of 2020.