October 23rd report:
According to the commodity analysis system, the price of 180CST fuel oil in the East China region continued to rise this week. As of October 23, the average price of 180CST fuel oil in China was 7,800 CNY/ton (including tax), an increase of 1.96% from the price of 7,650 CNY/ton on October 19.
According to reports, international crude oil prices rose this week, bolstering the cost support for China’s marine fuel blending feedstocks. Coupled with tight market supply, marine fuel prices continued to climb. Meanwhile, coastal bulk freight rates remained sluggish, and at elevated fuel prices, shipowners adopted a cautious approach, with demand largely driven by essential needs. As of October 23, China National Petroleum Corporation (CNPC) quoted low-sulfur fuel oil 180 cSt at RMB 7,900 per ton on a self‑pickup basis in Dalian, and RMB 7,950 per ton for 120 cSt; in Shanghai, the corresponding quotes were RMB 7,600 per ton for 180 cSt and RMB 7,700 per ton for 120 cSt.
This week, international crude oil prices have risen. The direct factor for this increase is the attack by the Houthi forces on Saudi energy infrastructure. Saudi Aramco has asked its employees to evacuate from its headquarters in Dharan along the Persian Gulf coast, leading the market to reprice the risk of supply disruptions in the core production areas of the Gulf.
On the international fuel oil front, according to Singapore’s Enterprise Singapore (ESG), as of the week ending October 21, Singapore’s fuel oil inventories rose by 815,000 barrels, reaching a four-week high of 18.858 million barrels; Singapore’s light distillate inventories fell by 2.835 million barrels, hitting a three-week low of 10.971 million barrels; and Singapore’s middle distillate inventories declined by 2.072 million barrels, dropping to a four-week low of 8.305 million barrels.
Market Outlook: Crude oil prices are rising, providing cost support to the marine fuel market. In the end‑user shipping sector, sharp temperature drops across many regions in China have led to a greater release of cargo volumes, resulting in a modest uptick in freight rates. However, with marine fuel prices remaining at elevated levels, shipowners are adopting a cautious procurement stance, focusing primarily on essential demand. Consequently, the 180CST fuel oil market is expected to trade largely within a high‑range consolidation in the near term.
