August 31 news
According to the commodity analysis system, the price of 180CST fuel oil in the eastern region of China has been continuously rising recently. As of August 30, the average price of 180CST fuel oil in China was 6,412.50 CNY/ton (including tax), an increase of 0.98% from the price of 6,350.00 CNY/ton on August 24.
It is understood that the recent decline in international crude oil prices has increased the wait-and-see sentiment in China's marine fuel market. However, due to tight supplies of blending raw materials for marine fuel in China, prices have continued to rise, supporting the marine fuel market, with the market trend continuously increasing. In the coastal shipping market, demand for vessels is weak, and shipowners are operating cautiously, mainly replenishing small volumes of fuel based on essential needs. It is understood that as of August 30, the self-pickup low-sulfur 180cst fuel oil price in Dalian by China National Offshore Oil Corporation (CNOOC) was 6730 CNY/ton, and the 120cst low-sulfur fuel oil price was 6830 CNY/ton. In Shanghai, the self-pickup low-sulfur 180cst fuel oil price was 6200 CNY/ton, and the 120cst low-sulfur fuel oil price was 6300 CNY/ton.
Recent international crude oil market trends have been downward, with the market cautiously weighing rumors of possible renewed talks between the United States and Iran, coupled with increased expectations of a Federal Reserve interest rate hike, leading to a decline in international oil prices.
Regarding international fuel oil, according to Singapore’s Enterprise Singapore (ESG): As of the week ending August 26, Singapore’s fuel oil inventories rose by 8.17 million barrels to reach 19.24 million barrels; light distillate inventories increased by 5.39 million barrels to 11.515 million barrels; and middle distillate inventories rose by 1.53 million barrels to 8.427 million barrels.
Outlook: Currently, the bunker fuel market in China is dominated by cost support and tight supply, leading to firm market prices. In the ship supply market, coastal shipping demand is relatively weak, and the atmosphere in the marine fuel trading market is subdued. However, supported by the tight supply of spot cargoes, ship supply prices may continue to remain high. It is expected that the 180CST fuel oil market in China will see a slight increase in the near term.
