SunSirs: China Domestic Fuel Oil 180CST continues to Decline (June 19-26)

According to the Commodity Analysis System of SunSirs, as of June 25th, the average price of domestic fuel oil 180CST was 4,892.00 RMB/ton (including tax), a decrease of 2.36% from the price of 5,010.00 RMB/ton on June 19th.

On June 25th, the fuel oil commodity index was 99.08, a decrease of 1.17 points from yesterday, a decrease of 27.63% from the cycle's highest point of 136.91 points (2022-11-17), and an increase of 115.02% from the lowest point of 46.08 points on August 15th, 2016. (Note: The cycle refers to the period from September 1st, 2011 to the present)

According to SunSirs, as of June 25th, the self extracting low sulfur quotation for fuel oil 180cst in the Zhoushan area of China National Combustion Corporation was 5,000 RMB/ton, and the self extracting low sulfur quotation for fuel oil 120cst was 5,100 RMB/ton; The quotation for 180 cst self extracting low sulfur fuel oil in the Shanghai region of China National Combustion Corporation is 4,900 RMB/ton, and the quotation for 120 cst self extracting low sulfur fuel oil is 5,000 RMB/ton.

The international crude oil market has declined last week. Mainly due to the expected impact of interest rate hikes by European central banks and further interest rate hikes by the Federal Reserve, demand side pressure is evident, overshadowing the positive data on US oil inventories. The recent macroeconomic pressure is still difficult to alleviate, and the market is seeking a rebalancing of supply and demand. The oil market will maintain a weak and volatile situation.

Singapore's fuel inventory has decreased. It is reported that the Enterprise Development Authority (ESG) of Singapore has reduced its fuel inventory by 2.715 million barrels in the week ending June 21, reaching a four week low of 18.535 million barrels. As of the week ending June 21, the inventory of light distillate oil decreased by 607,000 barrels to a five month low of 14.731 million barrels. As of the week ending June 21, the inventory of middle distillate oil decreased by 875,000 barrels to a low of 7.732 million barrels in over a month.

The crude oil market declined last week, and there is strong wait-and-see sentiment in the domestic ship fuel market; At present, the market situation of ship fuel is weak, with average terminal demand and limited replenishment capacity. Freight rates continue to be low, and market transactions mainly require small orders. At present, the low sulfur market price of fuel oil 180CST is around 4,800-5,000 RMB/ton, and the low sulfur market price of fuel oil 120CST is around 4,900-5,100 RMB/ton, which is a single negotiation. It is expected that the fuel oil 180CST market will be dominated by weak consolidation in the near future.

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