According to the data of business agency, as of November 28, the average price of domestic fuel oil 180CST was 5090.00 yuan / ton (including tax), down 1.17% from 5150.00 yuan / ton on November 22.

On November 28, the fuel oil commodity index was 103.09, the same as yesterday, down 17.10% from the highest point 124.35 in the cycle (2021-10-26), and up 123.72% from the lowest point 46.08 on August 15, 2016. (Note: the period refers to the period from September 1, 2011 to now)

The downward price of domestic marine oil raw materials has limited support for fuel oil 180CST. According to the business news agency, as of November 28, the self raised low sulfur quotation of 180 CST fuel oil and 120 CST fuel oil in Zhoushan area was 5300 yuan / ton, and the self raised low sulfur quotation of 5400 yuan / ton; The quotation of 180 CST self extracting low sulfur fuel oil in Shanghai is 5000 yuan / ton, and the quotation of 120 CST self extracting low sulfur fuel oil is 5100 yuan / ton.

This week, international crude oil prices rose first and then declined. U.S. President Biden sought ways to reduce gasoline prices for U.S. consumers, repeatedly mentioned the idea of releasing U.S. strategic oil reserves, and called on China, Japan and South Korea to release crude oil reserves. As soon as the news came out, crude oil prices fell sharply. On the other hand, at present, the organization of Petroleum Exporting Countries and its allies (OPEC +) production increase policy is still relatively conservative, and they still do not show the willingness to expand the scale of production increase under the pressure from the United States. In particular, the market is worried that if the US government continues to suppress oil prices and make oil prices fall sharply, OPEC + may even consider stopping production increase to offset the adverse impact of the decline in oil prices on the recovery of global oil capital expenditure.

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 November 24, the inventory of fuel oil depots in Singapore soared by 1.547 million barrels, reaching an 11 week high of 22.903 million barrels. Singapore’s medium distillate stocks fell 708000 barrels to a three-year low of 8.454 million barrels. Singapore’s light distillate stocks fell by 225000 barrels to a two-week low of 10.985 million barrels.

Future forecast: crude oil has fallen sharply, which is bad for the ship fuel market. The market has a strong bearish attitude, cautious downstream procurement, strong wait-and-see mood, and the transaction is just needed. The market price of fuel oil 180CST low sulfur is about 4900-5200 yuan / ton, and the market price of fuel oil 120cst low sulfur is about 5000-5300 yuan / ton. It is expected that the fuel oil 180CST market may have a downward trend in the near future.