According to the commodity analysis system of SunSirs, the domestic fuel oil 180CST market slightly declined last week. As of February 28th, the average price of domestic fuel oil 180CST was 5,706.00 RMB/ton (including tax), a decrease of 0.87% from the 5,756.00 RMB/ton price on February 24th.

According to the SunSirs, last week the prices of ship fuel blended raw materials fell, and the cost of ship fuel loosened. In addition, the downstream shipping market had 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.

Last week, crude oil prices fluctuated, and the acceleration of Russia Ukraine negotiations led to a reduction in geopolitical risks. Additionally, the United States may impose tariffs on multiple countries and organizations, including the European Union.

In terms of international fuel oil, the Singapore Enterprise Development Board (ESG) reported that 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.

Market forecast: 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.

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