This week, the price of 180CST fuel oil in China slightly increased

July 31st News

According to the commodity analysis system, the price of 180CST fuel oil in the East China region slightly increased this week. As of July 31, the average price of 180CST fuel oil in China was 5312.50 CNY/ton (tax included), representing a 0.71% increase from the price of 5275.00 CNY/ton on July 25.

It is understood that this week, due to the rise in international crude oil prices, it has been beneficial for the Chinese marine fuel market. The increase in Chinese residual oil prices has provided cost support to the Chinese marine fuel market. The downstream shipping market's freight rates have mainly remained stable, with shipowners making limited refueling, operating cautiously, and transactions mainly driven by rigid demand. It is understood that as of July 31, the self-pickup low-sulfur price for fuel oil 180cst in Dalian region of China National Offshore Oil Corporation (CNOOC) was 5470 CNY/ton, and the self-pickup low-sulfur price for fuel oil 120cst was 5570 CNY/ton; in Shanghai region, the self-pickup low-sulfur price for fuel oil 180cst was 5100 CNY/ton, and the self-pickup low-sulfur price for fuel oil 120cst was 5200 CNY/ton.

This week, crude oil market prices have risen. The main reasons are the new trade agreement reached between the United States and the European Union, the possibility of new sanctions against Russia by the U.S., and the continued weakening of concerns about U.S. tariffs, all of which have contributed to the ongoing increase in crude oil prices.

Regarding international fuel oil, Singapore's Enterprise Singapore (ESG) reported that as of the week ending July 23, Singapore's fuel oil inventories rose by 314,000 barrels to a two-week high of 23.699 million barrels; light distillate inventories increased by 737,000 barrels to a four-week high of 12.971 million barrels; and middle distillate inventories fell by 1.192 million barrels to a 76-week low of 7.87 million barrels.

Market forecast: Recent crude oil price increases are favorable for China's marine fuel market. In the bunkering market, shipping transactions are mainly driven by immediate demand, with cautious market operations and strong wait-and-see sentiment. Currently, the spot price for low-sulfur 180cst fuel oil is quoted at 5,100-5,500 CNY/ton, while the spot price for low-sulfur 120cst fuel oil is quoted at 5,200-5,600 CNY/ton. It is expected that the 180CST fuel oil market will likely remain stable in the near term.