SunSirs: The Rise in Mixed Raw Materials has Led to a Rise in China Domestic Ship Fuel Prices

According to the Commodity Analysis System of SunSirs, as of September 18, the average price of domestic fuel oil 180CST was 5,488.00 RMB/ton (including tax), an increase of 1.89% from the price of 5,386.00 RMB/ton on September 11.

According to SunSirs, as of September 18th, the self raised low sulfur quotation for fuel oil in the Ningbo area of China National Combustion Corporation was 5,450 RMB/ton for 180CST, and 5,500 RMB/ton for 120CST; The quotation for 180CST self extracting low sulfur fuel oil in China National Diesel Shanghai region is 5,400 RMB/ton, while the quotation for 120CST self extracting low sulfur fuel oil is 5,500 RMB/ton.

The international crude oil market has continued to rise recently. The main reason is that the expectation of supply tightening has overshadowed concerns about slowing economic growth and increasing US inventory. Saudi Arabia and Russia have extended their plan to reduce crude oil supply by 1.3 million barrels per day until the end of the year, as the sustained supply gap caused by the production reduction is significant, which may lead to tight crude oil supply in the fourth quarter; According to a report released by the EIA on Wednesday, US crude oil inventories unexpectedly increased by 4 million barrels last week, with analysts expecting a decrease of approximately 1.9 million barrels; The demand for gasoline and diesel in the United States remains strong, especially with a significant increase in diesel futures.

In terms of international fuel oil, it is understood that the Singapore Enterprise Development Group (ESG): As of the week ending September 13th, Singapore's fuel oil inventory increased by 1.32 million barrels, reaching a three week high of 20.77 million barrels. Singapore's medium distillate oil inventory increased by 365,000 barrels to a 24 week high of 9.1 million barrels. Singapore's light distillate oil inventory decreased by 1.506 million barrels to an 8-week low of 12.333 million barrels.

Recently, the international crude oil market has been on the rise, and the domestic ship fuel blended raw material resources are relatively scarce, with prices rising, supporting the domestic ship fuel market; In the ship supply market, coastal freight rates continue to be sluggish, and the situation of more ships and less cargo has not improved. There is a strong wait-and-see sentiment, and transactions mainly require small orders. At present, the low sulfur market price of fuel oil 180CST is around 5,400-5,600 RMB/ton, and the low sulfur market price of fuel oil 120CST is around 5,500-5,700 RMB/ton, which is a single negotiation. It is expected that the fuel oil 180CST market will continue to rise in the near future.

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