The fuel oil market has been trading lightly recently. The rise in international oil prices has caused costs to rise. However, due to the abundant domestic supply and weak demand, the prices have been unusually hard to beat, and overall they have been characterized by high levels of volatility. Spot prices and import costs remained unchanged from last week at 3,230 yuan (t price, the same below), which is still about 100 yuan higher than the futures price.
The stabilization of international crude oil prices has given the market a good bullish outlook. As a result, most importers' quotes are stable, and buyers are willing to enter the goods in the event of price fluctuations due to their own needs. Since January, so far, international crude oil futures prices have increased by 6.7% compared with last December. Singapore's fuel oil market has been hit by a large number of cargoes, and the increase has only reached 1.8%; and Whampoa fuel oil market is in buyers. Due to the combined effects of low purchase sentiment and relatively concentrated arrivals, it only rose by 0.29%, which greatly lags behind the rise in international oil prices. Therefore, it is expected that the short-term decline in Huangpu's fuel oil prices will be limited and the market sentiment will continue to pick up.
The Shandong residual oil market remained stable, and the demand for better-quality residual oil continued to rise steadily. However, the price did not fluctuate greatly. Currently, the transaction price of Kuti was basically maintained at 2700-2750 yuan; the demand for poor quality residual oil has also improved. Kuti transaction price in the 2600 ~ 2650 yuan; oil slurry prices continue to remain at 2400 ~ 2680 yuan. The overall improvement in heavy oil market demand has led to a high level of operation for local refineries, which will directly affect the next stage of the imported oil market.
The latest drop in crude oil inventories in the United States has once again caught the attention of the market. The international oil market has shown extraordinary resilience under numerous good news. After short-term adjustments, technical factors will drive a new rise in oil prices. The attitude of OPEC has actually become the basis for the stabilization and recovery of oil prices. The organization even discussed the issue of production reduction at the upcoming production meeting. Therefore, under the strong market environment, domestic fuel oil prices will follow the trend of the international market and maintain the trend of rising volatility.
The stabilization of international crude oil prices has given the market a good bullish outlook. As a result, most importers' quotes are stable, and buyers are willing to enter the goods in the event of price fluctuations due to their own needs. Since January, so far, international crude oil futures prices have increased by 6.7% compared with last December. Singapore's fuel oil market has been hit by a large number of cargoes, and the increase has only reached 1.8%; and Whampoa fuel oil market is in buyers. Due to the combined effects of low purchase sentiment and relatively concentrated arrivals, it only rose by 0.29%, which greatly lags behind the rise in international oil prices. Therefore, it is expected that the short-term decline in Huangpu's fuel oil prices will be limited and the market sentiment will continue to pick up.
The Shandong residual oil market remained stable, and the demand for better-quality residual oil continued to rise steadily. However, the price did not fluctuate greatly. Currently, the transaction price of Kuti was basically maintained at 2700-2750 yuan; the demand for poor quality residual oil has also improved. Kuti transaction price in the 2600 ~ 2650 yuan; oil slurry prices continue to remain at 2400 ~ 2680 yuan. The overall improvement in heavy oil market demand has led to a high level of operation for local refineries, which will directly affect the next stage of the imported oil market.
The latest drop in crude oil inventories in the United States has once again caught the attention of the market. The international oil market has shown extraordinary resilience under numerous good news. After short-term adjustments, technical factors will drive a new rise in oil prices. The attitude of OPEC has actually become the basis for the stabilization and recovery of oil prices. The organization even discussed the issue of production reduction at the upcoming production meeting. Therefore, under the strong market environment, domestic fuel oil prices will follow the trend of the international market and maintain the trend of rising volatility.