SunSirs: China Domestic Fuel Oil 180CST Market Fell first and then Rose Last Week

According to the commodity analysis system of SunSirs, the 180CST fuel oil market in East China first fell and then rose this week, with a slight overall increase. As of May 12th, the average price of 180CST fuel oil in China was 5,470.00 RMB/ton (including tax), an increase of 0.14% from the 5,462.00 RMB/ton price on May 5th.

According to the SunSirs, the domestic ship fuel market fell in the first half of the week due to the decline in crude oil prices during the May Day holiday. In the second half of the week, the slight increase in domestic residual oil prices supported the cost of the domestic ship fuel market, and downstream shipping market coastal bulk cargo prices fell. Terminal demand support was limited, and ship owners had restrictions on refueling. According to SunSirs, as of May 12th, the self pickup low sulfur quotation for 180CST fuel oil in Dalian area of China National Chemical Corporation is 5,580 RMB/ton, and the self pickup low sulfur quotation for 120CST fuel oil is 5,680 RMB/ton; The self extracted low sulfur quotation for 180CST fuel oil in the Shanghai area of China National Fuel Oil Corporation is 5,230 RMB/ton, and the self extracted low sulfur quotation for 120CST fuel oil is 5,330 RMB/ton.

The overall crude oil market was on the rise last week, with a significant drop in international oil prices during the May Day holiday. The main reason for this is that OPEC+ increased production beyond expectations, which is negative for international oil prices and has led to a sharp decline in the crude oil market. After May Day, with the increasing oil restrictions imposed by the United States on a certain country, as well as the impact of the Israeli Palestinian conflict and the intention of China and the United States to negotiate, international oil prices have risen.

In terms of international fuel oil, the Singapore Enterprise Development Board (ESG) reported that as of the week ending May 7th, Singapore's fuel oil inventories decreased by 1.931 million barrels to a 7-week low of 20.543 million barrels.

Market forecast: The recent rise in crude oil prices will provide support for the domestic ship fuel market; In the shipping market, transactions are generally average, with a focus on essential needs. At present, the self extracted low sulfur quotation for 180CST fuel oil is 5,200-5,500 RMB/ton, and the self extracted low sulfur quotation for 120CST fuel oil is 5,300-5,600 RMB/ton. It is expected that the fuel oil 180CST market will experience a slight increase in the near future.

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