SunSirs: China Domestic Ship Fuel Market was mainly Sorted Out Last Week

According to the Commodity Analysis System of SunSirs, as of January 22, the average price of domestic fuel oil 180CST was 5,502 RMB/ton (including tax), a decrease of 0.11% from the price of 5,508 RMB/ton on January 15.

According to SunSirs, as of January 22, the self pickup low sulfur quotation for fuel oil in the Dalian area of CNOOC is 5,650 RMB/ton, and the self pickup low sulfur quotation for fuel oil in the Dalian area is 5,700 RMB/ton; The price for self extracting low sulfur fuel oil in the Shanghai area of CNOOC is 5,450 RMB/ton for 180CST, and 5,550 RMB/ton for self extracting low sulfur fuel oil of 120CST.

Last week, the international crude oil market was volatile. On the one hand, the geopolitical situation was affected by disturbances, and coupled with the reduction of production in the Shalala oil field in Libya, the market was concerned about supply issues, which supported the rise of crude oil prices. On the other hand, Saudi Arabia's comprehensive reduction in crude oil prices has raised concerns about future energy demand in the market, as well as increased production from the Organization of the Petroleum Exporting Countries and its allies (OPEC+), putting pressure on the oil market. In addition, the continuous rise in US refined oil inventories, the strengthening of the US dollar, and weak demand have suppressed oil prices. The combined influence of bullish and bearish factors has led to fluctuations in the international oil price range during this cycle.

In terms of international fuel oil, it is understood that the Singapore Enterprise Development Group (ESG): As of the week ending January 17th, Singapore's fuel inventory decreased by 512,000 barrels, reaching a three week low of 22.53 million barrels; Singapore's light distillate oil inventory increased by 162,000 barrels, reaching a two-week high of 12.436 million barrels; Singapore's mid distillate oil inventory decreased by 212,000 barrels to a low of 6.903 million barrels in over a year.

The international crude oil market is volatile, and some domestic blending costs are strong, supporting 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.

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