This week, the overall trend of 180CST fuel oil in China has risen

September 28, News

According to the commodity analysis system, fuel oil 180CST prices in the East China region saw a slight overall increase this week. As of September 28, the average price of Chinese fuel oil 180CST stood at 5,475.00 CNY per ton (all prices inclusive of tax), up 0.69% from 5,437.50 CNY per ton on September 22.

It is reported that recent increases in international crude oil prices have boosted China's marine fuel market, driving up the prices of blended marine fuel raw materials and providing cost support for marine fuels. Meanwhile, freight rates in the downstream coastal shipping market have risen, prompting shipowners to replenish their fuel supplies ahead of the holiday season—though overall demand remains moderate. As of September 28, China National Fuel’s low-sulfur fuel oil 180cst delivered at the Dalian region was quoted at 5,550 CNY per ton, while the 120cst grade was priced at 5,650 CNY per ton. In Shanghai, the same grades were offered at 5,350 CNY/ton for 180cst and 5,450 CNY/ton for 120cst.

This week, the crude oil price has risen, mainly due to the ongoing Russia-Ukraine conflict triggering potential supply risks, and the possibility of escalated sanctions by the United States on certain oil-producing countries, coupled with a decline in U.S. commercial crude oil inventories, all providing support to oil prices.

On the international fuel oil front, Singapore's Enterprise Singapore (ESG) reported that, as of the week ending September 24, Singapore's fuel oil inventories fell by 2.606 million barrels to a 13-week low of 22.804 million barrels. Meanwhile, Singapore's middle distillate stocks declined by 240,000 barrels, reaching a 4-week low of 9.479 million barrels. In contrast, Singapore's light distillate inventories rose by 250,000 barrels, climbing to a 5-week high of 14.616 million barrels.

Market Forecast: Currently, shipping rates in the downstream market are declining, leading to a drop in cargo demand. Meanwhile, shipowners continue to fuel up due to immediate operational needs. Fuel oil 180cst delivered ex-ship low-sulfur prices are quoted at RMB 5,300–5,550 per ton, while fuel oil 120cst delivered ex-ship low-sulfur prices range from RMB 5,400 to RMB 5,650 per ton. It is expected that the fuel oil 180CST market will likely stabilize in the near term.