This week, the price of China's 180CST fuel oil has fallen from its high position

April 24th News

According to the commodity analysis system, this week the price of 180CST fuel oil in the East China region has fallen from its high. As of April 24, the average price of 180CST fuel oil in China was 6,100 CNY/ton (including tax), a decrease of 5.61% from the price of 6,462.50 CNY/ton on April 17.

It is understood that this week, the market for blended marine fuel in China has declined, with limited cost support for marine fuel; demand from the midstream and downstream is weak, and the willingness to purchase is average, with no improvement in terminal demand, and shipowners are cautious about refueling. It is understood that as of April 24, the self-pickup price for low-sulfur 180cst fuel oil in Dalian by China National Offshore Oil Corporation (CNOOC) was 6,250 CNY per ton, and the self-pickup price for low-sulfur 120cst fuel oil was 6,350 CNY per ton; in Shanghai, the self-pickup price for low-sulfur 180cst fuel oil was 5,900 CNY per ton, and the self-pickup price for low-sulfur 120cst fuel oil was 6,000 CNY per ton.

This week, international crude oil prices first fell and then rose. Iran stated that it would allow commercial vessels to pass through the Strait of Hormuz during the remainder of the ceasefire period, alleviating concerns about supply risks and causing international oil prices to drop sharply. However, as new U.S.-Iran peace talks have yet to resume, shipping in the Strait of Hormuz remains stalled, keeping supply risks persistent and driving international oil prices higher. In the medium to long term, as long as the risks in the Strait of Hormuz persist, international oil prices will continue to be characterized by high risk premiums and high volatility.

Regarding international fuel oil, according to Singapore’s Enterprise Singapore (ESG): As of the week ending April 22, Singapore’s fuel oil inventories fell by 1.164 million barrels to 22.501 million barrels; light distillate inventories declined by 1.086 million barrels to 16.916 million barrels; and middle distillate inventories rose by 0.45 million barrels to 10.722 million barrels.

Market Forecast: Currently, international crude oil prices are on the rise, and the Chinese marine fuel market is showing increased wait-and-see sentiment. However, demand in China’s domestic trade marine fuel market remains subdued, with most transactions involving deliveries under previously signed contracts. Shipowners are primarily replenishing their fuel stocks at lower prices driven by immediate, essential needs. At present, the ex-warehouse price for 180cst low-sulfur fuel oil stands at RMB 5,900–6,300 per ton, while the ex-warehouse price for 120cst low-sulfur fuel oil is RMB 6,000–6,400 per ton. It is expected that the 180CST fuel oil market will likely enter a period of consolidation in the near term.