According to the Commodity Analysis System of SunSirs, the price of domestic fuel oil 180CST increased slightly last week. As of February 29th, the average price of domestic fuel oil 180CST was 5630.00 RMB/ton (including tax), an increase of 0.36% from the price of 5,610.00 RMB/ton on February 26th.

According to the SunSirs, as of February 29th, the self pickup low sulfur price for fuel oil in the Dalian area of CNOOC is 5,780 RMB/ton, and the self pickup low sulfur price for fuel oil in the Dalian area is 5,880 RMB/ton; The price for self extracting low sulfur fuel oil in the Shanghai area of CNOOC is 5,750 RMB/ton for 180CST, and 5,850 RMB/ton for self extracting low sulfur fuel oil in 120CST.

In recent times, the international crude oil market has been fluctuating, with a significant increase in crude oil prices during the Spring Festival period. After the holiday, the crude oil market has mainly experienced range fluctuations. On the one hand, the tense geopolitical situation in the Middle East remains the main driving factor for the crude oil market; In addition, the expected reduction in production by oil producing countries is also a major factor supporting oil prices. On the other hand, the Federal Reserve has issued hawkish signals, delaying interest rate cuts and suppressing market confidence; The total number of oil and natural gas drilling rigs of state-owned energy enterprises has increased to the highest level since August 2023, and crude oil prices have been suppressed.

In terms of international fuel oil, it is understood that the Singapore Enterprise Development Group (ESG): As of the week ending February 21, Singapore's fuel inventory increased by 3.256 million barrels, reaching a three week high of 23.359 million barrels; Singapore's mid distillate oil inventory decreased by 702,000 barrels to a two-week low of 8.845 million barrels; Singapore's light fraction oil inventory increased by 1,394,000 barrels, reaching an 8-month high of 14.302 million barrels.

Market forecast: The international crude oil market is volatile, with cautious trading in the ship fuel market. After the Spring Festival holiday ends, the market will gradually return to normal; The supply market and shipping terminal market have weak demand, while coastal bulk transportation prices remain stable. Merchants mainly purchase small amounts of essential goods. At present, the low sulfur market price of fuel oil 180CST is around 5,600-5,700 RMB/ton, and the low sulfur market price of fuel oil 120CST is around 5,700-5,800 RMB/ton, which is a single negotiation. It is expected that the fuel oil 180CST market will mainly consolidate in the near future.

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