SunSirs: The Price of Fuel Oil 180CST Fell slightly in China Last Week (July 26-30)

　　According to the data of SunSirs, as of July 30, the average price of domestic fuel oil 180CST was 4,762.50 RMB/ ton (including tax), down 0.52% from 4,787.50 RMB/ ton on July 26.

　　On July 29, the fuel oil commodity index was 96.71, down 0.25 points from the previous day, down 16.56% from the highest point 115.91 in the cycle (October 17, 2018), and up 109.87% from the lowest point 46.08 on August 15, 2016(Note: period refers to the period from September 1, 2011 to now).

　　The slight rise of domestic marine oil raw materials supports the cost of fuel oil 180CST. According to SunSirs, as of July 30, the price of 180 CST fuel oil and 120 CST fuel oil in Zhoushan was 4,650 RMB/ ton and 4,750 RMB/ ton respectively; The quotation of 180 CST self pick-up low sulfur fuel oil in Shanghai was 4,900 RMB/ ton, and the quotation of 120 CST self pick-up low sulfur fuel oil was 5,000 RMB/ ton.

　　International crude oil prices rose, US crude oil inventories fell more than expected, and tight supply boosted oil prices. Some data show that US crude oil supply hit the lowest level since January 2020, and oil prices further increased.

　　Singapore’s fuel oil inventory decreased, which supported fuel oil prices. It is understood that the Singapore enterprise development authority (ESG): as of the week of July 28, Singapore’s fuel oil storage fell 1.53 million barrels to a three-week low of 22.904 million barrels.

　　SunSirs energy analysts believe that the recent rise in crude oil prices and a slight rise in marine raw materials, but the terminal demand of the domestic marine fuel market is weak and the market trading is light. In addition, due to the impact of rainfall and typhoon in some areas, the marine refueling business is limited and the wait-and-see mood is strong. It is expected that China fuel oil 180CST market will remain stable in the near future.