According to the data of the business community, the average price of 180CST of domestic fuel oil as of December 11 was 6206.00 yuan/ton (tax included), 5.97% lower than the price of 6600.00 yuan/ton on December 5.

On December 11, the fuel oil commodity index was 125.69, unchanged from yesterday, 8.20% lower than the cycle’s highest point of 136.91 (2022-11-17), and 172.76% higher than the lowest point of 46.08 on August 15, 2016. (Note: Period refers to 2011-09-01 to now)

The international crude oil price fell sharply, and the cost support of the ship fuel market was limited. According to the business community, as of December 11, the self raised low sulfur price of 180cst fuel oil in the Zhoushan area was 6350 yuan/ton, and the self raised low sulfur price of 120cst fuel oil was 6450 yuan/ton; The price of 180cst self raised low sulfur of fuel oil in CNGC Shanghai is 6180 yuan/ton, and the price of 120cst self raised low sulfur of fuel oil is 6230 yuan/ton.

The international crude oil price fell sharply, and the international crude oil price fell to the lowest level within the year. Because some economic data of the United States exceeded expectations, the possibility of the Federal Reserve’s radical interest rate increase still exists, which suppressed the benefits of OPEC+production reduction and Western sanctions against Russia. The unexpected growth of the US ISM non manufacturing index in November, released on Monday, reflects that the domestic economy is still resilient. The continued economic boom has triggered market concerns about the Federal Reserve’s transition from “dove” to “eagle”, which may disappoint the Federal Reserve’s previous desire to slow down interest rate hikes. The market provided the basis for the Federal Reserve to curb inflation and maintain the monetary tightening path, which affected the crude oil market to decline significantly. The overall global economy is weak, the prospect of energy demand is still not optimistic, and the economic weakness depresses oil prices.

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 of December 7, Singapore’s fuel inventory had increased by 412000 barrels, reaching a new three week high of 20.306 million barrels. Singapore’s light distillate oil inventory fell 1.253 million barrels to a two-week low of 13.388 million barrels. Singapore’s middle distillate oil inventory fell 694000 barrels to a three week low of 7066000 barrels. (Jinshi Data APP)

Future market forecast: the international crude oil price continues to decline, which is bad for the domestic ship fuel market. The domestic ship fuel raw material price declines, and the ship fuel market has a strong wait-and-see mood, mainly purchasing on demand. At present, the 180CST low sulfur market price of fuel oil is about 6100-6300 yuan/ton, and the 120CST low sulfur market price of fuel oil is about 6200-6400 yuan/ton. It is expected that the 180CST market of fuel oil will decline slightly in the near future.