October 31st 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 October 30, the average price of 180CST fuel oil in China was 7,912.50 CNY/ton (including tax), an increase of 1.12% from the price of 7,825 CNY/ton on October 26.
It is understood that this week, international crude oil prices have risen, and the cost of blending raw materials for marine fuel in China has increased, providing support to marine fuel costs. In addition, with tight market supply, marine fuel prices have continued to rise. In the high-price environment of the ship supply market, some shipowners are planning to suspend operations, and shipowners are operating cautiously, mainly focusing on replenishing necessary supplies. It is understood that as of October 30, the self-pickup low-sulfur 180cst fuel oil price in Dalian by China National Bunkering was 8050 CNY/ton, and the self-pickup low-sulfur 120cst fuel oil price was 7950 CNY/ton. In Shanghai, the self-pickup low-sulfur 180cst fuel oil price was 7900 CNY/ton, and the self-pickup low-sulfur 120cst fuel oil price was 8000 CNY/ton.
This week, international oil prices fell as expectations for U.S.-Iran talks increased under third-party mediation. The geopolitical risk premium in the Middle East quickly retreated, and the market's pricing of the tail risk of a disruption to oil shipments from the Persian Gulf significantly decreased, leading to a weakening of the geopolitical support.
On the international fuel oil front, according to Singapore’s Enterprise Singapore (ESG), as of the week ending October 28, Singapore’s fuel oil inventories fell by 175,000 barrels to 18.683 million barrels; light distillate inventories rose by 333,000 barrels to 11.304 million barrels; and middle distillate inventories increased by 197,000 barrels to 8.502 million barrels.
Outlook: With high blending feedstock prices in China and tight market resources, there is cost support for the bunker fuel market. In the terminal shipping market, bunker fuel prices are high, and shipowners are being cautious with their purchases, mainly driven by rigid demand. It is expected that the 180CST fuel oil market will mainly remain at high levels in the near term.
