China Fuel Oil 180CST Market Consolidation Mainly (10.27-11.3)

November 4th, according to news

According to the commodity analysis system, the recent market for 180CST fuel oil in East China has mainly been consolidating. As of November 3rd, the average price of 180CST fuel oil in China was 5400.00 CNY/ton (including tax), remaining stable compared to the price on October 27th.

It is understood that recently, the price of marine fuel blending raw materials in China has remained stable, with a wait-and-see sentiment increasing in the marine fuel market; the coastal shipping market's freight rates are stable, and shipowners are mainly replenishing fuel before the holiday out of necessity. It is understood that as of November 3rd, the self-pickup low-sulfur quotation for 180cst fuel oil in Dalian by China National Offshore Oil Corporation (CNOOC) is 5,550 CNY/ton, and the self-pickup low-sulfur quotation for 120cst fuel oil is 5,650 CNY/ton; in Shanghai, the self-pickup low-sulfur quotation for 180cst fuel oil is 5,300 CNY/ton, and the self-pickup low-sulfur quotation for 120cst fuel oil is 5,400 CNY/ton.

International crude oil prices saw a slight increase recently. The main reasons include declining U.S. commercial crude oil inventories, positive signals emerging from ongoing trade negotiations between China and the U.S., and growing concerns over potential U.S. military action against Venezuela, which has heightened supply risks and driven up global oil prices.

On the international fuel oil front, Singapore's Enterprise Singapore (ESG) reported that, as of the week ending October 29, Singapore's fuel oil inventories rose by 1.754 million barrels, reaching a two-week high of 24.781 million barrels. Meanwhile, Singapore's middle distillate stocks fell by 6.251 million barrels, dropping to a 13-week low of 85.22 million barrels. Singapore's light distillate fuel oil inventory stood at 13.339 million barrels, down 273,000 barrels from the previous week and marking a three-week trough.

Market Forecast: Crude oil prices are currently rising, providing support to China's marine fuel market. Shipowners with immediate fueling needs are replenishing their supplies, while coastal bulk freight rates remain generally stable. Currently, the ex-warehouse price for 180cst low-sulfur fuel oil stands at RMB 5,200–5,550 per ton, and for 120cst low-sulfur fuel oil, it’s priced at RMB 5,300–5,650 per ton. It is expected that the 180CST fuel oil market will likely consolidate in the near term.