June 30th, according to the news,
According to the commodity analysis system, the marine fuel market in East China fluctuated in June, with an overall slight increase. As of June 30, the average price of 180CST fuel oil in China was 6,037.50 CNY per ton, up 0.42% from 6,012.50 CNY per ton on June 1.
In June, the price trend of 180CST fuel oil in China first increased and then decreased: In the early part of June, the shipping market was quiet with limited rigid demand procurement. Additionally, the prices for blending components in the Chinese marine fuel market declined, leading to a downward trend in the overall marine fuel market. In mid-June, the prices for blending components in China rose, and the supply of taxed resources became tight, causing the marine fuel market to rise. In the latter part of June, the prices for blending components in the Chinese marine fuel market fell again, with limited cost support for marine fuel. The domestic coastal freight rates for bulk cargo were not favorable, and downstream demand was weak. Ship owners were cautious about refueling, leading to a decline in the marine fuel market. According to reports, as of June 30, the self-pickup low-sulfur 180CST fuel oil price was between 5800-6300 CNY/ton, and the self-pickup low-sulfur 120CST fuel oil price was between 5900-6400 CNY/ton.
In June, international crude oil prices experienced a significant downward trend, primarily driven by the resumption of shipping through the Strait of Hormuz, the return of crude oil supplies from the Middle East, the U.S. dollar index reaching a 13-month high, weak global demand for crude oil, and downward revisions to oil price forecasts by leading investment banks—all of which combined to create a perfect storm of negative factors. The risk premium previously embedded in oil prices due to geopolitical tensions has largely been fully priced out by the market. Coupled with generally weak fundamentals in global crude oil supply and demand, the crude oil market has plunged sharply.
On the international fuel oil front, 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. With a large volume of Middle Eastern and South American residual oils expected to arrive in ports over the short term, coupled with a temporary weakening in regional demand for marine fuel blending, market supply pressures have significantly intensified, putting downward pressure on spot prices for both high- and low-sulfur fuel oils in Singapore.
Market Forecast: Currently, international crude oil prices are experiencing volatile downward trends, and the Chinese marine fuel market is showing an increasing wait-and-see sentiment. China’s taxed fuel supply remains relatively tight. Although the demand side has entered the traditional peak shipping season of summer, with steady vessel arrivals at both domestic and foreign trade ports providing a solid base demand, the sharp price hikes in mid-June have already exhausted downstream stockpiling demand. As a result, shipping companies and traders generally maintain low inventory strategies, and under high prices, there is little willingness to replenish stocks aggressively, making it difficult to sustain continuous buying support. Overall, in July, China’s marine fuel oil market will likely continue to fluctuate within a wide range.
