SunSirs: Mixed Exchange Costs are Rising, and China Domestic Fuel Oil is showing an Upward Trend (July 10-16)

According to the Commodity Analysis System of SunSirs, as of July 16th, the average price of domestic fuel oil 180CST was 4,908.00 RMB/ton (including tax), a decrease of 0.20% from the price of 4,918.00 RMB/ton on July 10th.

On July 16th, the fuel oil commodity index was 99.40, unchanged from yesterday, a decrease of 27.40% from the cycle's highest point of 136.91 points (2022-11-17), and an increase of 115.71% 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 Business News, as of July 16th, the self raised low sulfur quotation for fuel oil in Zhoushan area of China National Combustion Corporation was 4,800 RMB/ton for 180CST, and 4,900 RMB/ton for 120CST; 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 risen last week. On the one hand, the production reduction of the OPEC and its allies (OPEC+) intensified supply concerns, and Saudi Arabia and Russia announced new production reduction measures. On the other hand, the United States Department of Energy's plan to replenish strategic oil reserves has also warmed up the oil market. Finally, the US dollar strengthened, Asian demand growth boosted international oil prices, supported by demand in the summer peak oil season, and the Energy Information Administration (EIA) data report on Wednesday showed a rapid decline in crude oil inventories.

Singapore's fuel inventory has decreased. It is reported that the Enterprise Development Authority (ESG) of Singapore has reduced its fuel inventory by 2.217 million barrels in the week ending July 12th, reaching a low of 18.354 million barrels in more than a month; Singapore's light distillate oil inventory decreased by 539,000 barrels to a seven month low of 13.041 million barrels; Singapore's medium distillate oil inventory increased by 178,000 barrels, reaching a two week high of 7.865 million barrels.

Last week, the international crude oil market is on the rise, and the cost of mixing domestic ships and fuels is strong. The market is bullish, but the current situation of sluggish terminal demand is difficult to change, and market transactions are slightly pushing up. At present, the low sulfur market price of fuel oil 180CST is around 4,800-5,100 RMB/ton, and the low sulfur market price of fuel oil 120CST is around 4,900-5,200 RMB/ton, which is a single negotiation. It is expected that the fuel oil 180CST market may slightly increase in the near future.

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