SunSirs: Strong Support from Crude Oil, China Refined Gasoline and Diesel Prices Increase

According to the Commodity Market Analysis System of SunSirs, the price trend of locally refined gasoline and diesel in Shandong has risen this week. As of the 12th, the domestic price of 92# gasoline was 7,755.83 RMB/ton, with a weekly price increase of 1.18%; The domestic price of 0# diesel is 6,789 RMB/ton, with a weekly price increase of 0.71%.

Cost aspect: Crude oil prices have risen significantly, with strong cost support

The crude oil market prices have risen significantly. As of the 11th, the settlement price of the July WTI crude oil futures contract in the United States was $68.15 per barrel, and the settlement price of the August Brent crude oil futures contract was $69.77 per barrel. The crude oil market has seen a significant increase, mainly due to the escalating tensions in the Middle East region, as well as the good progress made in Sino US trade negotiations and the unexpected decline in US crude oil inventories. Positive factors have supported the international oil market, leading to an upward trend in domestic gasoline and diesel prices.

Supply side: Shandong's local refining production has declined, resulting in a decrease in the supply of refined oil products

Recently, there has been little change in the operating rate of the main refineries, and the supply of resources is relatively normal. The average operating rate of Shandong refineries has dropped to around 51%, and the operating rate of Shandong refineries is at a medium to low level. The main refineries in China are operating normally, but some refineries in Shandong still have maintenance plans, which may further drive down the overall operating rate. The supply of refined oil products in Shandong has declined, and the trend of the gasoline and diesel markets has risen.

Demand side: There is still support for demand, and both gasoline and diesel are on the rise

In terms of gasoline, there has been an increase in residents' travel and other activities recently. Guided by this news, many businesses have stocked up appropriately. In addition, considering the low inventory level, the gasoline market has risen. However, the continuous penetration of new energy vehicles has had a certain impact on gasoline demand. Overall, the gasoline market has risen. In terms of diesel, there has been an increase in terminal demand, and the favorable summer harvest will also be gradually launched. The increase in agricultural oil consumption supports the demand for diesel. In addition, the pressure on diesel inventory is not high, and refineries are more proactive. Infrastructure and logistics are relatively normal, and the diesel market trend is rising.

Supported by recent positive news, international oil prices are expected to rise in the short term, providing some support for the domestic refined oil market. From a domestic perspective, the operating rate of refineries has declined in the short term, resulting in a decrease in the supply of refined oil products. In addition, the demand for gasoline is still acceptable, leading to a slight increase in gasoline market prices; There is still support in terms of diesel demand, and diesel prices may continue to rise in the later period.

If you have any enquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.