SunSirs: China Domestic Fuel Oil 180CST Market Rose Last Week

According to the commodity analysis system of SunSirs, the 180CST fuel oil market in East China rose last week. As of June 20th, the average price of 180CST fuel oil in China was 5,450.00 RMB/ton (including tax), an increase of 1.87% from the 5,350.00 RMB/ton price on June 16th.

According to the Business Society, last week, due to the rise in international crude oil prices and the increase in domestic blended raw material prices, the cost of the domestic ship fuel market was supported. The downstream shipping market's coastal bulk cargo prices remained stable, but terminal demand support was limited, and ship owners mainly needed to replenish oil. According to Business News Agency, as of June 20th, the self pickup low sulfur quotation for 180cst fuel oil in Dalian area of China National Fuel Oil Corporation is 5,680 RMB/ton, and the self pickup low sulfur quotation for 120cst fuel oil is 5,780 RMB/ton; The self extracted low sulfur quotation for 180cst fuel oil in the Shanghai area is 5,350 RMB/ton, and the self extracted low sulfur quotation for 120cst fuel oil is 5,450 RMB/ton.

Last week, the crude oil market rose. On the one hand, the conflict between Israel and Iran, coupled with geopolitical tensions, raised concerns about supply risks, leading to a significant increase in the international oil market; On the other hand, the trade negotiations between China and the United States have made good progress, and coupled with the unexpected decline in US crude oil inventories, favorable factors have supported the international oil market, with the crude oil market mainly rising.

In terms of international fuel oil, the Singapore Enterprise Development Board (ESG) reported that as of the week ending June 18th, Singapore's fuel oil inventories decreased by 2.211 million barrels to a 5-week low of 21.503 million barrels; The inventory of light distillate oil decreased by 720,000 barrels to a 33 week low of 12.614 million barrels; The inventory of medium distillate oil increased by 505,000 barrels to a 15 week high of 11.22 million barrels.

Market forecast: The recent rise in crude oil prices will provide support for the domestic ship fuel market; The ship supply market and shipping market have average transactions, with a focus on urgent needs. Market operations are cautious, and there is a strong wait-and-see sentiment. At present, the self extracted low sulfur quotation for 180cst fuel oil is 5,350-5,700 RMB/ton, and the self extracted low sulfur quotation for 120cst fuel oil is 5,450-5,800 RMB/ton. It is expected that the fuel oil 180CST market will mainly consolidate in the near future.

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