July 26 News
According to the commodity analysis system, the 180CST fuel oil market in East China this week showed a fluctuating upward trend. As of July 24, the average price of 180CST fuel oil in China was 6,250 CNY/ton (including tax), an increase of 3.09% from the price of 6,062.50 CNY/ton on July 17.
It is understood that this week, the continuous rise in international crude oil prices has pushed up the cost of blending raw materials for Chinese marine fuel, with support for marine fuel costs, leading to a rise in market conditions; in the ship supply market, terminal shipping prices have increased, but suppliers are cautious about chasing higher prices due to procurement costs, mainly focusing on small-volume refueling. It is understood that as of July 24, in Dalian, the self-pickup low-sulfur 180cst fuel oil price quoted by China National Offshore Oil Corporation (CNOOC) was 6,300 CNY per ton, and the self-pickup low-sulfur 120cst fuel oil price was 6,400 CNY per ton; in Shanghai, the self-pickup low-sulfur 180cst fuel oil price was 6,100 CNY per ton, and the self-pickup low-sulfur 120cst fuel oil price was 6,200 CNY per ton.
This week, international crude oil prices have surged significantly. The core logic behind the rise is the normalization of the blockade in the Strait of Hormuz and a direct attack on the Red Sea's Bab-el-Mandeb Strait, putting pressure on both of the Middle East's key oil export routes simultaneously. The risk of supply disruptions has driven up the risk premium. Additionally, while OPEC+ plans to increase production, implementation is difficult, and the EU's tightening sanctions on Russia have indirectly raised the overall cost of crude oil trade, providing indirect support to oil prices.
In the international fuel oil market, Singapore's Enterprise Singapore (ESG): As of the week ending July 22, Singapore's fuel oil inventory increased by 345,000 barrels to a 3-week high of 19,460,000 barrels; Singapore's middle distillate inventory decreased by 593,000 barrels to a 3-week low of 8,715,000 barrels.
Market Forecast: In the short term, international crude oil prices are still expected to remain relatively strong, providing support for China's marine fuel market. The tight supply of taxed refined products at ports is unlikely to ease in the near term. Coupled with rising freight rates in the shipping market, the 180CST fuel oil market is expected to continue its upward trend in the near future.
