According to the commodity analysis system of SunSirs, the 180CST fuel oil market in East China slightly declined in mid July. As of July 21, the average price of 180CST fuel oil in China was 5,312.50 RMB/ton (including tax), a decrease of 0.93% from the 5,362.50 RMB/ton price on July 11.

According to SunSirs, the stable and moderate increase in domestic blended raw material prices in mid July provided cost support for the domestic ship fuel market. Downstream shipping market suppliers mainly consumed inventory, and terminal demand support was limited. Shipowners were cautious in their operations, and small orders were mainly for essential needs. According to Business News Agency, as of July 21st, the self pickup low sulfur quotation for 180CST fuel oil in Dalian area of China National Chemical Corporation is 5,280 RMB/ton, and the self pickup low sulfur quotation for 120CST fuel oil is 5,380 RMB/ton; The self extracted low sulfur quotation for 180CST fuel oil in the Shanghai area of China National Fuel Oil Corporation is 5,050 RMB/ton, and the self extracted low sulfur quotation for 120CST fuel oil is 5,150 RMB/ton.

The crude oil market has been fluctuating recently. The crude oil market is affected by both bullish and bearish factors. On the one hand, OPEC+ has released its annual world oil outlook and lowered its energy demand expectations, putting pressure on oil prices. On the other hand, the geopolitical situation in the Middle East has led to increased sanctions against Russia by the United States, and the United States will impose a 30% tariff on most imported goods from the European Union and Mexico from August 1st, causing fluctuations in the crude oil market.

In terms of international fuel oil, the Singapore Enterprise Development Board (ESG) reported that as of the week ending July 16th, Singapore's fuel oil inventories decreased by 1.323 million barrels to a two-week low of 23.385 million barrels; Singapore's light distillate oil inventory increased by 230,000 barrels, reaching a two-week high of 12.234 million barrels; Singapore's middle distillate oil inventory decreased by 682,000 barrels to a 10 week low of 9.062 million barrels.

The decline in crude oil prices will increase the wait-and-see sentiment in the domestic ship fuel market; The supply market and shipping market are mainly driven by essential needs for transactions, and market operations are cautious. The self extracted low sulfur quotation for 180CST fuel oil is 5,100-5,650 RMB/ton, and the self extracted low sulfur quotation for 120CST fuel oil is 5,200-5,750 RMB/ton. It is expected that the fuel oil 180CST market will mainly consolidate in the near future.

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