According to the data of business agency, as of December 12, the average price of domestic fuel oil 180CST was 5060.00 yuan / ton (including tax), which was stable compared with that on December 6.

On December 13, the fuel oil commodity index was 102.08, down 0.4 points from yesterday, down 17.91% from the highest point 124.35 (2021-10-26) in the cycle, and up 121.53% from the lowest point 46.08 on August 15, 2016. (Note: the period refers to the period from September 1, 2011 to now)

The rising price of domestic marine oil raw materials supports the cost of fuel oil 180CST. According to the business news agency, as of December 12, the quotation of 180 CST fuel oil and 120 CST fuel oil in Zhoushan was 5300 yuan / ton, and the 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.

International crude oil prices rebounded this week. At the beginning of this week, South Africa reported that the symptoms of local Omicron infection cases were mild. After that, the market was worried about undermining oil demand, and oil prices ushered in a retaliatory rebound. In addition, the Iranian nuclear negotiations are at an impasse, the possibility of Iranian oil returning to the market is reduced, and crude oil is also supported to a certain extent. Second, the US Energy Information Administration (EIA) reported on Wednesday that US crude oil inventories fell slightly last week, which benefited the oil market. OPEC +, an oil producing country, also acts as a ballast. OPEC + decided to continue to release 400000 barrels / day of production capacity as planned at the ministerial meeting on December 2, reflecting the confidence of the alliance led by Saudi Arabia and Russia in the future demand prospects. In addition, the organization of Petroleum Exporting Countries and its allies (OPEC +) control production, it is unlikely that Iranian oil will return to the international market in the near future, the oil market remains in a tight balance, and the oil price is supported.

Singapore’s increased fuel stocks have limited support for fuel oil prices. It is understood that Singapore enterprise development authority (ESG): as of the week of December 8, Singapore’s fuel oil inventory increased by 812000 barrels, reaching a two-week high of 20.63 million barrels. Singapore’s light distillate stocks fell 319000 barrels to a one week low of 11.96 million barrels. Singapore’s medium distillate stocks fell by 601000 barrels to a one week low of 7.41 million barrels.

Future forecast: the international crude oil rises, the cost of ship fuel market is supported, and the price rises slightly, but the terminal demand is poor, the transaction is light, and the downstream procurement is cautious. The market price of fuel oil 180CST low sulfur is about 5000-5300 yuan / ton, and the market price of fuel oil 120cst low sulfur is about 5100-5400 yuan / ton. It is expected that the fuel oil 180CST market may be dominated by consolidation in the near future.