According to the commodity analysis system of SunSirs, the domestic ship fuel market overall rose in February. As of February 28th, the average price of domestic fuel oil at 180CST was 5,706.00 RMB/ton, an increase of 2.33% from 5,576.00 RMB/ton on February 1st.

The domestic fuel oil price of 180CST rose in February, but slightly declined at the end of the month. The rise in mixed raw material prices in mid to early February supported the marine fuel market, and the marine oil market rose; In the latter half of the year, the prices of blended raw materials for ship fuel have fallen, and the cost of ship fuel has loosened. In addition, the downstream shipping market has limited oil replenishment by ship owners, resulting in mainly small transactions and a consolidation of the ship fuel market. According to Business News Agency, as of February 28th, the self pickup low sulfur quotation for 180CST fuel oil in Dalian area of China National Chemical Corporation is 6,100 RMB/ton, and the self pickup low sulfur quotation for 120CST fuel oil is 6,200 RMB/ton; The self extracted low sulfur quotation for 180CST fuel oil in the Shanghai area is 5,580 RMB/ton, and the self extracted low sulfur quotation for 120CST fuel oil is 5,680 RMB/ton.

International crude oil prices fluctuated downward in February. In the first half of the year, commercial crude oil and gasoline inventories in the United States increased significantly, coupled with market concerns about the risk of trade disputes, and Trump's reaffirmation of increasing US crude oil production, leading to a decline in international oil prices. In the middle of the month, market concerns about the potential drag on demand from US tariffs have weakened, while US sanctions on some oil producing countries continue. Market concerns about potential supply risks have increased, coupled with the possibility of OPEC+ delaying production increases, leading to an increase in international oil prices. The acceleration of the Russia Ukraine peace talks in the latter half of the year has led to a reduction in geopolitical risks, and the United States may impose tariffs on multiple countries and organizations, including the European Union, causing a decline in international oil prices.

In terms of international fuel oil, it is reported that the Singapore Enterprise Development Board (ESG): as of the week ending February 26, Singapore's fuel oil inventories decreased by 1.364 million barrels, reaching a 14 week low of 17.547 million barrels; Singapore's light distillate inventories rose by 149,000 barrels, reaching a 21 month high of 16.524 million barrels; The inventory of medium distillate oil decreased by 342,000 barrels, reaching a 4-week low of 9.657 million barrels.

In the near future, the domestic market for ship fuel blended raw materials will be weak, with limited support for the ship fuel market, and the market will mainly adopt a wait-and-see approach; In the shipping market, the recovery of transportation capacity is slow, and the situation of more ships and less cargo is difficult to change. The main focus is on terminal demand procurement, and transactions are sluggish. At present, the self extracted low sulfur quotation for 180CST fuel oil is 5,600-5,900 RMB/ton, and the self extracted low sulfur quotation for 120CST fuel oil is 5,700-6,000 RMB/ton. It is expected that the fuel oil 180CST market will mainly consolidate in the near future.

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