According to the commodity analysis system of SunSirs, the 180CST fuel oil market in East China was consolidated at a high level last week. As of March 27th, the average price of 180CST fuel oil in China was 6,587.50 RMB/ton (including tax), an increase of 0.38% from the price of 6,562.50 RMB/ton on March 22nd.

According to SunSirs, the domestic market for ship fuel blended raw materials remained stable and declined last week, with limited support for ship fuel costs; In the first half of the week, downstream terminal bulk freight rates rose, but due to international crude oil fluctuations, the main reason for the demand for oil replenishment from shipowners was due to the need for replenishment. According to the Business Society, as of March 27th, the self pickup low sulfur quotation for 180cst fuel oil in the Dalian area of China National Chemical Corporation is 6,700 RMB/ton, and the self pickup low sulfur quotation for 120cst fuel oil is 6,800 RMB/ton; The self extracted low sulfur quotation for 180cst fuel oil in the Shanghai area of China National Fuel Oil Corporation is 6,700 RMB/ton, and the self extracted low sulfur quotation for 120cst fuel oil is 6,800 RMB/ton.

Last week, the international crude oil market fluctuated and declined. The United States claimed to have made positive progress in negotiations with Iran, easing market concerns and causing a decline in international oil prices; Iran denies engaging in peace talks with the United States, the conflict has not substantially eased, and international oil prices have risen. In the medium to long term, as long as the risk of the Strait of Hormuz is not relieved, international oil prices will maintain a high-risk premium and high volatility pattern.

In terms of international fuel oil, the Singapore Enterprise Development Board (ESG) reported that as of the week ending March 25th, Singapore's inventory increased by 471,000 barrels, reaching a 10 week high of 24.509 million barrels; Singapore's light distillate oil inventory rose by 504,000 barrels, reaching a two-week high of 18.438 million barrels; Singapore's intermediate distillate oil inventory rose by 1.227 million barrels, reaching a 6-week high of 9.099 million barrels.

At present, the international crude oil market is volatile, and the wait-and-see sentiment in the domestic ship fuel market is increasing; In the second half of the week, the coastal bulk cargo freight rates have rebounded, the market demand for transportation is average, and the sentiment of ship owners to replenish oil is not good. Ship owners mainly need to replenish oil urgently. At present, the self extracted low sulfur quotation for 180cst fuel oil is 6,300-6,800 RMB/ton, and the self extracted low sulfur quotation for 120cst fuel oil is 6,400-6,900 RMB/ton. The geopolitical premium is difficult to quickly dissipate, and it is expected that the fuel oil 180CST market will fluctuate in a high range in the near future.

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