This week, China's 180CST fuel oil market first rose then fell

November 23, news

According to the commodity analysis system, the 180CST fuel oil market in East China this week first increased and then decreased, remaining stable overall. As of November 21, the average price of 180CST fuel oil in China was 5412.50 CNY/ton (including tax), which remained stable compared to the price on November 17.

It is understood that at the beginning of this week, the prices of blended raw materials for Chinese marine fuel increased, providing cost support and leading to a rise in the marine fuel market. In the latter half of the week, with the international crude oil market declining, there was an increase in wait-and-see sentiment in the Chinese marine fuel market, causing the market to decline somewhat. The coastal shipping market saw a drop in freight rates, with shipowners' demand for refueling being weak, and transactions mainly consisting of small, essential orders. It is understood that as of November 21, the self-pickup price for low-sulfur 180cst fuel oil in Dalian from China National Offshore Oil Corporation (CNOOC) was 5,540 CNY/ton, and the self-pickup price for low-sulfur 120cst fuel oil was 5,640 CNY/ton. In Shanghai, the self-pickup price for low-sulfur 180cst fuel oil was 5,150 CNY/ton, and the self-pickup price for low-sulfur 120cst fuel oil was 5,250 CNY/ton.

This week, international crude oil prices edged lower overall, primarily due to the U.S. unveiling a new plan to revive peace talks between Russia and Ukraine, combined with the ongoing momentum of OPEC+ increasing production.

On the international fuel oil front, Singapore's Enterprise Singapore (ESG) reported that, as of the week ending November 19, Singapore's middle distillate inventories rose by 864,000 barrels to 9.961 million barrels, marking a four-week high; light distillate stocks increased by 1.713 million barrels to 14.422 million barrels, reaching an eight-week peak; meanwhile, fuel oil inventories fell by 1.434 million barrels to 24.518 million barrels, hitting a two-week low.

Market Forecast: Currently, the decline in international crude oil prices has heightened China's marine fuel market sentiment, leading to a wait-and-see approach among traders. Meanwhile, the downstream shipping market remains weak, with shipowners primarily driven by their immediate need to replenish fuel supplies.

At present, the ex-warehouse price for 180cst low-sulfur fuel oil stands at RMB 5,200–5,550 per ton, while the ex-warehouse quote for 120cst low-sulfur fuel oil ranges from RMB 5,300 to RMB 5,650 per ton.

Looking ahead, the 180CST fuel oil market is expected to stabilize in the near term.