September 16 news
According to the commodity analysis system, the recent price of 180CST fuel oil in the East China region has been continuously rising. As of September 16, the average price of 180CST fuel oil in China was 7,437.50 CNY/ton (including tax), an increase of 12.48% from the price of 6,612.50 CNY/ton on September 7.
It is understood that the recent rise in international crude oil prices has pushed up the Chinese marine fuel market, with an increase in the cost of blending raw materials for marine fuels providing cost support. In addition, tight market resource supply has led to a continuous rise in marine fuel prices; the shipping demand in the bunkering market remains weak, with more ships than cargo, making it difficult to change the situation. Under high marine fuel prices, ship owners are cautious in their operations, focusing mainly on essential needs. It is understood that as of September 16th, in Dalian, the self-pickup low-sulfur 180cst fuel oil price quoted by China National Offshore Oil Corporation (CNOOC) was 7,600 CNY per ton, and the self-pickup low-sulfur 120cst fuel oil price was 7,700 CNY per ton; in Shanghai, the self-pickup low-sulfur 180cst fuel oil price was 7,200 CNY per ton, and the self-pickup low-sulfur 120cst fuel oil price was 7,300 CNY per ton.
Recent international crude oil prices have risen significantly. The root cause of the surge in oil prices lies in the attack on Saudi Arabia's east-west oil pipeline, putting pressure on Red Sea exports; the unexpected shutdown of Libyan oil fields, increasing global supply pressures; and mutual attacks on energy facilities between Ukraine and Russia, intensifying tensions in refined oil supplies.
Regarding international fuel oil, according to Singapore’s Enterprise Singapore (ESG): As of the week ending September 9, Singapore’s fuel oil inventories decreased by 98,000 barrels to 20.355 million barrels; middle distillate inventories rose by 3.26 million barrels to 8.237 million barrels; and light distillate inventories increased by 1.196 million barrels to 11.874 million barrels.
Market Forecast: Crude oil prices have risen consecutively, and the supply of marine fuel resources in the market is tight, providing support to the marine fuel market. Meanwhile, shipowners in the end-user shipping market are cautious about procurement, with demand driven primarily by essential needs. It is expected that the market price for 180 CST fuel oil will continue to rise in the near term.
