According to the data of SunSirs, the average price of domestic fuel oil 180CST as of January 8 was 5,966.00 RMB/ton (tax included), down 0.07% from the price of 5,970.00 RMB/ton on January 2.

The fuel oil commodity index on January 8 was 120.83, which was the same as yesterday, down 11.74% from the cycle's highest point of 136.91 (2022-11-17), and up 162.22% from the lowest point of 46.08 on August 15, 2016. (Note: the period refers to September 1, 2011 to now)

The international crude oil price is down, and the cost support of ship fuel market is limited. According to the SunSirs, as of January 8, the self-raised low sulfur price of 180 CST fuel oil in the Zhoushan area was 5,900 RMB/ton, and the self-raised low sulfur price of 120 CST fuel oil was 6,000 RMB/ton; CNOOC Shanghai quoted 5,950 RMB/ton for 180 CST self-raised low sulfur fuel oil and 6,050 RMB/ton for 120 CST self-raised low sulfur fuel oil.

The international crude oil price is down, the economic recession is expected to remain unchanged, and the tightening policy of the Federal Reserve is likely to continue. The continued tightening of the monetary policy of the Federal Reserve raises the risk that the United States and major developed economies in the world will fall into recession, which will then depress fuel demand, and the oil price will be under pressure. The winter snowstorm weather in the United States is still fermenting, leading to the frustration of the local aviation industry. The cancellation of large-scale flights has caused serious damage to the aviation coal market, but also has a negative impact on self-driving travel, and the demand for gasoline has been depressed; In addition, the snowstorms in many places reduced the crude oil processing capacity of North America, resulting in the accumulation of crude oil, and then suppressed the oil price. In addition, the risk of the global economy falling into recession in 2023 is increasing, and the inflation level of the western developed economies is high, and it is difficult to tighten monetary policy or exit in the short term, which will harm the global economy, and the negative impact on the decline of crude oil price.

Singapore's fuel inventory has increased, which has limited support for fuel oil prices. It is understood that the Singapore Enterprise Development Authority (ESG): as of the week of January 4, Singapore's medium distillate oil inventory increased by 636,000 barrels, reaching a three-month high of 8.336 million barrels; The inventory of light distillate oil increased by 1.215 million barrels to a two-week high of 15.667 million barrels.

The international crude oil price trend is downward last week, and the domestic ship fuel market is in a strong wait-and-see mood. After the festival, the downstream stock demand is released in succession, and the purchase is based on demand, but the shipping price is negative than the ship fuel market, and the transaction is general. At present, the low sulfur market price of fuel oil 180CST is about 5,900-6,100 RMB/ton, and the low sulfur market price of fuel oil 120CST is about 6,000-6,150 RMB/ton. It is expected that China fuel oil 180CST market will be sorted out in the near future.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.