Market Outlook – August 16 2023 Pricing Window

Refined Products Review and Outlook

Crude oil prices have risen significantly since the month of July, to about USD86 per barrel in the last selling window of August 2023. This rise has been largely attributed to supply tightness due to OPEC+ production cuts and renewed optimism about Chinese demand. The OPEC+ nations in April 2023 announced a significant cut in production by about 1.2 million barrels per day. This development led to a surge in crude prices in the month of April 2023. However, high inflation rates resulted in most central banks in the US and Europe increasing interest rates to unprecedented levels leading to a considerable slump in global demand for crude and petroleum products in Q2.