SunSirs: Resource Constraints, China Domestic Ship Fuel Market is on the Rise

According to the Commodity Analysis System of SunSirs, as of January 8th, the average price of domestic fuel oil 180CST was 5,506.00 RMB/ton (including tax), an increase of 1.62% from the price of 5,418.00 RMB/ton on January 1st.

According to SunSirs, as of January 8th, the self pickup low sulfur quotation for fuel oil in the Dalian area of CNOOC is 5,650 RMB/ton, and the self pickup low sulfur quotation for fuel oil in the Dalian area is 5,700 RMB/ton; The price for self extracting low sulfur fuel oil in the Shanghai area of CNOOC is 5,450 RMB/ton for 180CST, and 5,550 RMB/ton for self extracting low sulfur fuel oil of 120CST.

This week, the international crude oil market fluctuated and rose, mainly due to weak market sentiment. With the impact of the Asian decline in international crude oil prices, SC crude oil entered a long short tug of war. Lido still faces the unresolved Red Sea crisis. From a bearish perspective, on the macro level, the better than expected US employment data has lowered the probability of the Federal Reserve lowering interest rates in March, leading to a cooling of oil demand expectations. Adding to last week's EIA report, which showed a higher than expected increase in US refined oil inventories, the weakening of US oil demand has weighed on the market.

In terms of international fuel oil, it is understood that the Singapore Enterprise Development Board (ESG): As of the week ending January 3, Singapore's light distillate oil inventory decreased by 377,000 barrels, reaching a three week low of 12.99 million barrels; Singapore's mid distillate oil inventory decreased by 728,000 barrels to a five month low of 7.363 million barrels; Singapore's fuel inventory increased by 1.219 million barrels, reaching a five and a half month high of 22.313 million barrels.

The international crude oil market is rising, and domestic mixed exchange resources are tight to support the domestic ship fuel market; In the shipping market, shipping prices have fallen slightly, and merchants are mainly purchasing for basic needs. At present, the low sulfur market price of fuel oil 180CST is around 5,500-5,600 RMB/ton, and the low sulfur market price of fuel oil 120CST is around 5,600-5,700 RMB/ton, which can be negotiated separately. It is expected that the fuel oil 180CST market will mainly consolidate in the near future.

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