According to the data of the business community, the average price of 180CST of domestic fuel oil as of October 23 was 6630.00 yuan/ton (tax included), which was stable compared with the price of 6610.00 yuan/ton on October 17.

On October 23, the fuel oil commodity index was 134.28, unchanged from yesterday, down 1.05% from the peak of 135.70 (2022-06-21) in the cycle, and up 191.41% from the lowest point of 46.08 on August 15, 2016. (Note: Period refers to 2011-09-01 to now)

The international crude oil price fluctuated downward, and the cost support of the ship fuel market was limited. According to the business community, as of October 23, the self raised low sulfur price of 180cst fuel oil in the Zhoushan area was 6600 yuan/ton, and the self raised low sulfur price of 120cst fuel oil was 6700 yuan/ton; The price of 180cst self raised low sulfur of fuel oil in CNGC Shanghai is 6650 yuan/ton, and the price of 120cst self raised low sulfur of fuel oil is 6750 yuan/ton.

International crude oil prices fell in shock. Since the Organization of Petroleum Exporting Countries and its allies (OPEC+) agreed to cut their production target by 2 million barrels per day during the National Day holiday, the expectation of tight crude oil supply has led to a rise in oil prices. However, the release of reserves in the United States followed. In addition, against the background of high global inflation, the market strengthened the expectation of the central bank to significantly increase interest rates. The expectation of economic recession risk weakened the demand for fuel. In the short term, it offset the positive impact of the Organization of Petroleum Exporting Countries (OPEC+) and its allies (OPEC+) to significantly reduce production, and the price of crude oil fell accordingly.

Singapore’s fuel oil inventory increased, providing limited support for fuel oil prices. It is understood that the Singapore Enterprise Development Board (ESG): As of the week ended October 19, Singapore’s light distillate oil inventory fell 1.393 million barrels to 15.184 million barrels, a three-month low. Singapore’s medium distillate oil inventory decreased by 1.176 million barrels to 6.963 million barrels, the lowest level in four months. Singapore’s fuel oil inventory rose 839000 barrels to a two-week high of 21.04 million barrels.

Future forecast: the international crude oil market has been in shock recently, and the domestic raw material price is strong at present; Affected by the domestic epidemic situation, port refueling is currently limited, and the transaction is mainly just in demand. In the near future, the ship fuel market is mainly stable. At present, the 180CST low sulfur market price of fuel oil is about 6700 yuan/ton, and the 120CST low sulfur market price of fuel oil is about 6800 yuan/ton. It is expected that the 180CST market of fuel oil will be dominated in the near future.