SunSirs: China Domestic Ship Fuel Market Saw a High-level Consolidation Last Week

According to the Commodity Analysis System of SunSirs, as of January 14th, the average price of domestic fuel oil 180CST was 5,508.00 RMB/ton (including tax), an increase of 0.04% from the price of 5,506.00 RMB/ton on January 8th.

According to SunSirs, as of January 14th, the self pickup low sulfur price for fuel oil in the Dalian area of CNOOC is 5,650 RMB/ton for 180CST, and 5,700 RMB/ton for fuel oil with 120CST; The price for self extracting low sulfur fuel oil in the Shanghai area of CNOOC is 5,500 RMB/ton for 180CST, and 5,600 RMB/ton for self extracting low sulfur fuel oil in 120CST.

Last week, the international crude oil market fluctuated and declined, mainly due to concerns about future energy demand caused by Saudi Arabia's comprehensive reduction in crude oil prices, as well as increased production from the Organization of the Petroleum Exporting Countries and its allies (OPEC+), putting pressure on the oil market.

In terms of international fuel oil, it is understood that the Singapore Enterprise Development Group (ESG): As of the week ending January 10th, Singapore's fuel oil storage increased by 702,000 barrels to 23.015 million barrels, reaching a high of about 9 months. Singapore's light distillate oil inventory decreased by 716,000 barrels to a four week low of 12.274 million barrels; Singapore's mid distillate oil inventory decreased by 248,000 barrels to a five month low of 7.115 million barrels.

Future forecast: The international crude oil market is fluctuating downward, and some domestic blending costs have loosened, increasing the wait-and-see sentiment in the domestic ship fuel market; The demand for ships in the supply market and shipping terminal market continues to be sluggish, with merchants mainly purchasing for essential needs. 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 can be negotiated separately. It is expected that the fuel oil 180CST market will mainly consolidate in the near future.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.