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

According to the commodity analysis system of SunSirs, the 180CST fuel oil market in East China first rose and then fell last week, and remained stable overall. As of November 21, the average price of 180CST fuel oil in China was 5,412.50 RMB/ton (including tax), which was stable compared to November 17.

According to SunSirs, the price of domestic ship fuel blended raw materials rose at the beginning of last week, which supported the cost of ship fuel and led to an increase in the ship fuel market; In the second half of the week, with the international crude oil market falling, there was an increase in wait-and-see sentiment in the domestic ship fuel market, leading to a slight decline in market conditions; The freight rates in the downstream coastal shipping market have fallen, and the demand for oil replenishment by ship owners is weak, resulting in mainly small orders for essential needs. According to Business News, as of November 21st, the self pickup low sulfur quotation for 180CST of fuel oil in the Dalian area of China National Chemical Corporation is 5,540 RMB/ton, and the self pickup low sulfur quotation for 120CST of fuel oil is 5,640 RMB/ton; The self extracted low sulfur quotation for 180CST fuel oil in the Shanghai area is 5,150 RMB/ton, and the self extracted low sulfur quotation for 120CST fuel oil is 5,250 RMB/ton.

Last week, international crude oil prices fell overall, mainly due to the new plan proposed by the United States to restart peace talks between Russia and Ukraine, coupled with the continued atmosphere of OPEC+ production increase, leading to a decline in international oil prices.

In terms of international fuel oil, the Singapore Enterprise Development Board (ESG) reported that as of the week ending November 19th, Singapore's intermediate distillate oil inventory increased by 864,000 barrels to 9.961 million barrels, reaching a four week high; The inventory of light distillate oil increased by 1.713 million barrels to 14.422 million barrels, reaching an eight week high; Fuel oil inventories decreased by 1.434 million barrels to 24.518 million barrels, hitting a two-week low.

The current international crude oil market downturn has increased the wait-and-see sentiment in the domestic ship and fuel market, and the terminal shipping market is weak, with ship owners mainly meeting their urgent needs for oil replenishment. At present, the self extracted low sulfur quotation for 180CST fuel oil is 5,200-5,550 RMB/ton, and the self extracted low sulfur quotation for 120CST fuel oil is 5,300-5,650 RMB/ton. It is expected that the fuel oil 180CST market will mainly consolidate in the near future.

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