Post-holiday China 180CST fuel oil prices slightly increase

February 26th, news:

According to the commodity analysis system, the price of 180CST fuel oil in the East China region has slightly increased after the holiday. As of February 26, the average price of 180CST fuel oil in China was 5,400.00 CNY/ton (including tax), up 0.47% from 5,375.00 CNY/ton on February 23.

It is understood that after the holiday, the market for blended marine fuel in China has been steadily rising with low inventory levels, and the cost support for marine fuel has led to a slight increase in prices. The freight rates for downstream bulk carriers have also slightly increased, with shipowners actively dispatching vessels, primarily driven by the need to replenish fuel. As of February 26, the self-pickup low-sulfur 180cst fuel oil price in Dalian by China National Offshore Oil Corporation (CNOOC) was 5,500 CNY/ton, and the 120cst fuel oil was 5,600 CNY/ton. In Shanghai, the self-pickup low-sulfur 180cst fuel oil price was 5,350 CNY/ton, and the 120cst fuel oil was 5,450 CNY/ton.

During the Spring Festival, international crude oil prices rose, mainly due to the dual impact of geopolitical tensions and fundamental changes, with the escalation of U.S.-Iran relations becoming the core driving factor. After the holiday, the market focused on the prospects of U.S.-Iran talks. The Iranian side expressed hope to reach a fair agreement with the U.S. in the shortest time possible, easing concerns, leading to a decline in international oil prices.

Regarding international fuel oil, according to Singapore’s Enterprise Singapore (ESG): As of the week ending February 25, Singapore’s fuel oil inventories rose by 103,000 barrels to reach a two-week high of 22.632 million barrels; meanwhile, Singapore’s light distillate inventories fell by 2.190 million barrels, reaching a four-week low of 17.284 million barrels.

Market Forecast: Currently, international crude oil prices are trending downward, and the Chinese marine fuel market is adopting a more wait-and-see attitude. As end-user enterprises resume operations, the supply-demand balance in the marine fuel market is gradually improving, with shipowners primarily driven by urgent needs to replenish their fuel stocks. At present, the ex-warehouse price for 180cst low-sulfur fuel oil stands at RMB 5,250–5,450 per ton, while the ex-warehouse price for 120cst low-sulfur fuel oil is RMB 5,350–5,550 per ton. It is expected that the 180CST fuel oil market will likely remain relatively stable in the near term.