SunSirs: Supported by Mix Cost, China Domestic Ship Fuel Market is on the Rise

According to the Commodity Analysis System of SunSirs, as of December 24th, the average price of domestic fuel oil 180CST was 5,404.00 RMB/ton (including tax), an increase of 1.69% from the price of 5,314.00 RMB/ton on December 18th.

According to SunSirs, as of December 24th, the self pickup low sulfur quotation for fuel oil in the Dalian area of CNOOC is 5,550 RMB/ton, and the self pickup low sulfur quotation for fuel oil in the Dalian area is 5,600 RMB/ton; The price for self extracting low sulfur fuel oil in the Shanghai area of CNOOC is 5,380 RMB/ton for 180CST, and 5,480 RMB/ton for self extracting low sulfur fuel oil in 120CST.

Recently, the overall international crude oil market has risen. At present, there is still significant uncertainty in the situation in the Middle East, and the Red Sea shipping crisis may continue to disrupt the market in the short term; In addition, against the backdrop of the Federal Reserve's upcoming interest rate cut cycle, the weak US dollar has provided long-term positive support for the oil market.

In terms of international fuel oil, it is understood that the Singapore Enterprise Development Group (ESG): As of the week ending December 20th, Singapore's fuel inventory decreased by 1.015 million barrels, reaching a two-week low of 20.552 million barrels; Singapore's mid distillate oil inventory decreased by 560,000 barrels to a four month low of 8.081 million barrels; The inventory of light fraction oil increased by 1.8 million barrels, reaching a 5-week high of 13.3 million barrels.

Market forecast: The international crude oil market will fall over the weekend, increasing the wait-and-see sentiment in the domestic ship fuel market; But the strong cost of domestic blending supports the domestic ship fuel market; In the ship supply market, shipowner transportation is gradually recovering, ports are gradually returning to normal, and shipowner procurement enthusiasm is increasing. At present, the low sulfur market price of fuel oil 180CST is around 5,200-5,500 RMB/ton, and the low sulfur market price of fuel oil 120CST is around 5,300-5,600 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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