According to the Commodity Analysis System of SunSirs, the domestic ship fuel market fluctuated and rose in January. As of January 31, the average price of 180CST fuel oil in China was 5,520.00 RMB/ton, an increase of 1.88% from 5,418.00 RMB/ton on January 1.
The domestic fuel oil price of 180CST rose in January, while the international crude oil market rose in January. The strong cost of domestic blending supported the domestic ship fuel market; The supply market and terminal shipping market are weak, and market transactions are light. In addition, pre holiday restocking is gradually ending, and the market mainly focuses on procurement for essential needs. According to SunSirs, as of January 31st, the self pickup low sulfur quotation for fuel oil in the Dalian area of CNOOC is 5,700 RMB/ton for 180CST and 5,750 RMB/ton for 120CST; The price for self extracting low sulfur fuel oil in the Shanghai area of CNOOC is 5,300 RMB/ton for 180CST, and 5,400 RMB/ton for self extracting low sulfur fuel oil of 120CST.
The international crude oil prices in January have shown an upward trend. On the one hand, the geopolitical situation has been disrupted, and the instability of the Middle East situation still exists. The market is concerned about supply issues, which has supported the rise of crude oil prices. On the other hand, the North Dakota Pipeline Authority announced on Friday that about 30% of North Dakota's oil production is still closed due to extreme cold weather and operational challenges. In addition, the reduction of finished oil inventories in the United States, the approaching Chinese New Year, and strong demand during the holiday will boost the demand for crude oil. The combination of multiple positive factors has led to a significant increase in crude oil prices during the cycle.
In terms of international fuel oil, it is understood that the Singapore Enterprise Development Board (ESG): As of January 24th, Singapore's inventory of residual fuel oil, including fuel oil and low sulfur waxy residual oil, decreased by 1.492 million barrels to 21.011 million barrels; The inventory of light distillate oil, including naphtha, gasoline, and reforming oil, increased by 638,000 barrels to 13.074 million barrels; The inventory of medium distillate oil increased by 24,000 barrels to 6.927 million barrels.
The international crude oil market is rising, and the domestic blending cost is strong, supporting the domestic ship fuel market; In the shipping market, the stocking of goods by merchants has gradually ended before the Spring Festival, and the value of coastal bulk cargo has decreased, suppressing the mentality of shipowners to replenish goods, resulting in limited market transactions. At present, the low sulfur market price of fuel oil 180CST is around 5,400-5,700 RMB/ton, and the low sulfur market price of fuel oil 120CST is around 5,500-5,800 RMB/ton, which can be negotiated separately. It is expected that the fuel oil 180CST market will mainly consolidate at a high level in the near future.
