June 28 news
According to the commodity analysis system, the price of 180CST fuel oil in the East China region has declined this week. As of June 26, the average price of 180CST fuel oil in China was 6,087.50 CNY/ton (tax included), a decrease of 1.42% from the price of 6,175 CNY/ton on June 22.
It is understood that this week, the blending raw material market for marine fuel in China has declined, with limited cost support for marine fuel. Currently, domestic wholesalers are experiencing tight supplies of taxed resources, leading to high offer prices; in the bunkering market, the freight rates for domestic coastal bulk shipping are not performing well, with weak demand downstream, and shipowners are being cautious about refueling. It is understood that as of June 26, the self-pickup low-sulfur 180cst fuel oil in Dalian, offered by China National Offshore Oil Corporation (CNOOC), is priced at 6300 CNY/ton, and the self-pickup low-sulfur 120cst fuel oil is priced at 6400 CNY/ton; in Shanghai, the self-pickup low-sulfur 180cst fuel oil is priced at 5950 CNY/ton, and the self-pickup low-sulfur 120cst fuel oil is priced at 6050 CNY/ton.
This week, the international crude oil market trended downward, with the main bearish factors being: a significant easing of the US-Iran situation, continuous improvement in navigation through the Strait of Hormuz, and plans by oil-producing countries such as Iraq to accelerate production increases, all of which put pressure on the oil market.
Regarding international fuel oil, according to Singapore’s Enterprise Singapore (ESG): As of the week ending June 24, Singapore’s fuel oil inventories rose by 5.311 million barrels to 20.302 million barrels; middle distillate inventories increased by 283,000 barrels to 8.519 million barrels; and light distillate inventories climbed by 1.334 million barrels to 13.365 million barrels.
Market Forecast: Currently, international crude oil prices are trending downward, leading to lower costs for residual fuel oil and blending feedstocks. As a result, the Chinese marine fuel market is adopting a more wait-and-see attitude. Moreover, with the shipping industry entering its off-season, the number of vessels calling at ports has declined, prompting shipowners to focus primarily on meeting their immediate demand for fuel. It is expected that the 180 CST fuel oil market will likely remain weak and consolidate in the near term.
