July 17th, according to news,
According to the commodity analysis system, the price of 180CST fuel oil in the East China region increased this week. As of July 17, the average price of 180CST fuel oil in China was 6,062.50 CNY/ton (including tax), a 1.25% increase from the price of 5,987.50 CNY/ton on July 13.
It is understood that this week, the market for blended marine fuel in China has risen, with cost support for marine fuel, and resources are tight for some domestic wholesalers. In the supply market, most ports were closed due to typhoons in the first half of the week, while domestic coastal bulk freight rates remained stable in the second half of the week, with weak demand downstream, and shipowners were cautious in refueling. It is understood that as of July 17, the self-pickup low-sulfur 180cst fuel oil price in Dalian, China National Offshore Oil Corporation (CNOOC) was 6100 CNY/ton, and the 120cst fuel oil price was 6200 CNY/ton; in Shanghai, the self-pickup low-sulfur 180cst fuel oil price was 6050 CNY/ton, and the 120cst fuel oil price was 6150 CNY/ton.
This week, crude oil prices have risen. The direct reason for the significant increase in oil prices is the official announcement by the United States to implement a maritime blockade on the entire coastline of Iran. Multiple geopolitical risks have amplified market concerns. Geopolitical risks can quickly push up oil prices, and the root cause lies in the continuous and substantial reduction of U.S. crude oil inventories, lacking reserve inventories to cushion against sudden supply shocks. The market's safety cushion has become extremely thin, and as a result of this news, the crude oil market has surged significantly.
Regarding international fuel oil, according to Singapore’s Enterprise Singapore (ESG): As of the week ending July 15, Singapore’s fuel oil inventories fell by 62,000 barrels to 19.115 million barrels; light distillate inventories declined by 4.17 million barrels to 11.828 million barrels; and middle distillate inventories rose by 3.96 million barrels to 9.308 million barrels.
Market Forecast: Currently, the downward trend in international crude oil prices has intensified the wait-and-see sentiment in China's marine fuel market. In the supply-side market, coastal bulk freight rates for domestic trade remain stable, with terminal demand largely driven by essential needs, and shipowners primarily placing small-scale bunker orders. It is expected that the 180CST fuel oil market will likely consolidate in the near term.
