SunSirs: Weak Crude Oil, the Wait-and-see Sentiment of China Domestic Ship Fuel Market Increased

According to the Commodity Analysis System of SunSirs, as of September 24th, the average price of domestic fuel oil 180CST was 5,518.00 RMB/ton (including tax), an increase of 0.55% compared to the price of 5,488.00 RMB/ton on September 18th.

According to Business News, as of September 24th, the self extracting low sulfur quotation for 180CST of fuel oil in the Ningbo area of China National Combustion Corporation is 5,450 RMB/ton, and the self extracting low sulfur quotation for 120CST of fuel oil is 5,500 RMB/ton; The quotation for 180 CST self extracting low sulfur fuel oil in the Shanghai region of China National Combustion Corporation is 5,550 RMB/ton, and the quotation for 120 CST self extracting low sulfur fuel oil is 5,650 RMB/ton.

The international crude oil market has been fluctuating recently. The Federal Reserve has decided to maintain interest rates unchanged as expected by the market, but its attitude has been hawkish, with the possibility of interest rate hikes expected to continue within the year. Energy demand expectations are being suppressed, and oil prices are under pressure.

In terms of international fuel oil, it is understood that the Singapore Enterprise Development Authority (ESG): As of the week ending September 20th, Singapore's fuel oil inventory increased by 1.085 million barrels to 21.855 million barrels, the highest level in a month. Singapore's medium distillate inventory decreased by 99,000 barrels to a 2-week low of 9.001 million barrels. Singapore's light distillate inventory increased by 805,000 barrels, reaching a two-week high of 13.138 million barrels.

China domestic ship fuel blended raw material resources have increased, supporting the domestic ship fuel market. However, the international crude oil continues to decline, exacerbating the wait-and-see sentiment in the domestic ship fuel market; In the ship supply market, the downstream pre holiday stocking has basically ended, and coastal freight rates have slightly rebounded. The situation of more ships and less goods has not improved, and transactions mainly require replenishment. At present, the low sulfur market price of fuel oil 180CST is around 5,500-5,600 RMB/ton, and the low sulfur market price of fuel oil 120CST is around 5,600-5,700 RMB/ton, which is a single negotiation. It is expected that the fuel oil 180CST market will be mainly consolidated in the near future.

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