This week, the price of 180CST fuel oil in China saw a slight decline

November 27 news

According to the commodity analysis system, the price of 180CST fuel oil in the East China region slightly declined this week. As of November 27, the average price of 180CST fuel oil in China was 5,350.00 CNY/ton (including tax), a decrease of 1.15% from the price of 5,412.50 CNY/ton on November 21.

It is understood that this week, the prices of blended marine fuel raw materials in China have risen, providing cost support for marine fuels, but the fluctuating international crude oil market has increased the wait-and-see sentiment in China; the demand for coastal shipping in the downstream market has weakened, with freight rates softening, and shipowners' refueling needs are mainly driven by necessity. It is understood that as of November 27, the self-pickup price for low-sulfur 180cst fuel oil in Dalian, China National Chemical Corporation (CNCC), was 5,540 CNY per ton, and the self-pickup price for low-sulfur 120cst fuel oil was 5,640 CNY per ton; in Shanghai, the self-pickup price for low-sulfur 180cst fuel oil was 5,000 CNY per ton, and the self-pickup price for low-sulfur 120cst fuel oil was 5,100 CNY per ton.

This week, international crude oil prices fluctuated and declined. During this period, OPEC+ announced a new round of production increases, and the market remains concerned about the risk of long-term supply surplus. Regional tensions have eased somewhat, and with weakening demand in the United States, along with U.S. tariff issues dragging down the global economy and demand expectations, international oil prices have slightly decreased.

Regarding international fuel oil, according to Singapore’s Enterprise Singapore (ESG): As of the week ending November 26, Singapore’s fuel oil inventories rose by 191,000 barrels to a two-week high of 24.709 million barrels; light distillate inventories stood at 13.524 million barrels, down 8.98 million barrels from the previous week, marking a two-week low.

Market Forecast: Currently, international crude oil prices are experiencing increasing volatility, leading to a wait-and-see sentiment in China's marine fuel market. The downstream shipping market remains weak, and the situation of ample vessel supply and limited cargo demand is unlikely to change. Shipowners’ primary need at this stage is to replenish their fuel stocks. At present, the ex-warehouse price for 180cst low-sulfur fuel oil stands at RMB 5,100–5,550 per ton, while the ex-warehouse price for 120cst low-sulfur fuel oil is RMB 5,200–5,650 per ton. It is expected that the 180CST fuel oil market will likely enter a period of consolidation in the near term.