SunSirs: Fuel Oil 180CST Price Rose slightly in China Last Week

According to the data of SunSirs, the average price of 180CST of domestic fuel oil as of November 13 was 6,760.00 RMB/ ton (tax included), 0.45% higher than the price of 6,730.00 RMB/ ton on November 7.

On November 13, the fuel oil commodity index was 136.91, unchanged from the previous day, hitting a new record high in the cycle and 197.11% higher than the lowest point of 46.08 on August 15, 2016. (Note: Period refers to 2011-09-01 to now)

The international crude oil price fluctuated downward, and the cost support of the ship fuel market was limited. According to SunSirs, as of November 13, the self raised low sulfur price of 180CST fuel oil in the Zhoushan area of CNGC was 6,700 RMB/ ton, and the self raised low sulfur price of 120CST fuel oil was 6,800 RMB/ ton; The price of 180CST self raised low sulfur of fuel oil in CNGC Shanghai is 6,800 RMB/ ton, and the price of 120CST self raised low sulfur of fuel oil is 6,900 RMB/ ton.

The international crude oil price fell in shock. OPEC will start to reduce production in November. At that time, the crude oil production will decline, strongly supporting the oil price. EIA data shows that the US crude oil export volume has reached a record high, and the US total crude oil inventory has fallen to a nearly 21 year low, promoting the rise of crude oil prices. However, the overall economy is weak, and the prospect of energy demand is still not optimistic. The economic weakness depresses oil prices. The oil demand expectation in Asia is still uncertain. With the mid-term elections in the United States looming, the market's worries about demand have depressed oil prices.

Singapore's fuel oil inventory increased, providing limited support for fuel oil prices. It is understood that the Singapore Enterprise Development Board (ESG): as of November 9, Singapore's fuel oil inventory had increased by 2.522 million barrels to a five week high of 21.471 million barrels; Singapore's light distillate oil inventory fell by 1.132 million barrels to 13.518 million barrels, a more than six month low; Singapore's medium distillate oil inventory increased 465,000 barrels to a four week high of 7.274 million barrels.

The international crude oil price has fallen, which is bad for the domestic ship fuel market. But at present, the supply in the South is tight, the ship fuel price is high and firm, the market wait-and-see mood has increased, the deal is just in demand, and the ship fuel market is stable in the near future. At present, the 180CST low sulfur market price of fuel oil is about 6,700-6,800 RMB/ ton, and the 120CST low sulfur market price of fuel oil is about 6,800-6,900 RMB/ ton. It is expected that the 180CST market of fuel oil will be consolidated in China in the near future.

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