August 21st, according to news
According to the commodity analysis system, the price of 180CST fuel oil in the East China region continued to rise this week. As of August 21, the average price of 180CST fuel oil in China was 6,350 CNY/ton (including tax), an increase of 1.60% from the price of 6,250.00 CNY/ton on August 17.
It is understood that this week, the rise in international crude oil prices has boosted China's marine fuel market. Additionally, with the increase in blending raw materials for China's marine fuels, the cost support for marine fuels has risen, leading to a continuous increase in the marine fuel market. The coastal shipping volume in the supply market is moderate, and ship owners are operating cautiously, mainly focusing on replenishing fuel as needed. It is understood that as of August 11, the self-pickup low-sulfur price for 180cst fuel oil in the Dalian region of China National Offshore Oil Corporation (CNOOC) was 6,580 CNY/ton, and the self-pickup low-sulfur price for 120cst fuel oil was 6,680 CNY/ton. In the Shanghai region, the self-pickup low-sulfur price for 180cst fuel oil was 6,250 CNY/ton, and the self-pickup low-sulfur price for 120cst fuel oil was 6,350 CNY/ton.
This week, international crude oil prices have surged significantly. As of the 21st, WTI crude oil has risen to $86.83 per barrel, and Brent crude oil has reached $93.78 per barrel. The root cause of the sharp rise in oil prices is the rapid escalation of geopolitical tensions in the Middle East. On August 17th, the 60-day conflict memorandum of understanding between the United States and Iran officially expired, but neither side intends to renew it. Negotiations broke down completely due to disagreements over control of the Strait of Hormuz, dashing previous market expectations for a de-escalation. Shipping safety is threatened, and fears of supply disruptions have spread, causing a significant increase in crude oil market prices.
On the international fuel oil front, according to Singapore’s Enterprise Singapore (ESG): As of the week ending August 19, Singapore’s fuel oil inventories rose by 1.188 million barrels to reach a two-week high of 18.423 million barrels; light distillate inventories fell by 1.217 million barrels to 10.976 million barrels, hitting their lowest level since November 2021; and middle distillate inventories declined by 739,000 barrels, reaching a two-week low of 8.274 million barrels.
Market Forecast: The continued rise in international crude oil prices is supporting China’s marine fuel market; however, the end-user shipping market performance has been moderate, and shipowners are being cautious in their procurement, with demand driven primarily by essential needs. It is expected that the 180CST fuel oil market will see a slight upward trend in the near term.
