SunSirs: China Fuel Oil 180CST Price Rose Last Week (June 14-20)

　　As of June 20, the average 180CST price of domestic fuel oil was 4,745.00 RMB/ ton (including tax), up 2.04% from 4,650.00 RMB/ ton on June 14, according to the data of SunSirs.

　　On June 20, the fuel oil commodity index was 94.18, which was the same as the previous day, decreased by 18.75% from 115.91 (October 17, 2018), the highest point in the cycle, and increased by 104.38% from 46.08, the lowest point on August 15, 2016(Note: period refers to the period from September 1, 2011 to now)

　　Domestic marine oil raw materials rose to fuel oil 180CST cost support. According to SunSirs, as of June 20, the 180 CST self provided low sulfur price of fuel oil in Zhoushan was 4,750 RMB/ ton, and the 120 CST self provided low sulfur price of fuel oil was 4,850 RMB/ ton; The price of 180 CST self pick-up low sulfur fuel oil in Shanghai was 4,830 RMB/ ton, and that of 120 CST self pick-up low sulfur fuel oil was 4,930 RMB/ ton.

　　International oil prices rose in a volatile manner. The weakening of oil prices was dragged down by the strength of the US dollar. The surge of new cases in the UK rekindled market demand worries. The expected return of Iranian oil to the market had an impact on the oil market. OPEC officials said that the growth of us oil production in 2021 was expected to be limited, and the oil price would gain upward momentum within OPEC’s more controllable expectations.

　　SunSirs energy analysts believe that the recent rise of fuel oil 180CST price is mainly affected by the rise of crude oil price, but the market transaction is light, terminal shipping demand is weak, downstream purchasing enthusiasm is not high, mainly on demand, and the rising resistance is large. Business enthusiasm for raw material procurement is not high, market turnover is low, and China fuel oil 180CST market is expected to be stable in the near future.