Fuel oil vulnerable pattern is difficult to break

Last week, the change rate of crude oil in the three places broke the red line of -4%. After the price adjustment of refined oil products was implemented on the 27th, the buyer’s market did not change its wait-and-see attitude, and merchants could not continue to make up the offer, but the price reduction promotion did not bring real benefits to the actual transaction. The ship burning market in the area is in deep market with no market stalemate.

Last week, Sinopec and China Combustion and other major sales units all lowered their prices and cut prices by 50-100 yuan/ton. Wu Limin predicted that at present, South China fuel oil prices have basically dropped to the bottom, or stimulate the escalating replenishment mood in the middle and lower reaches. In the short term, as Shandong's refined oil products are slightly pushed up, the willingness to boost the low level of South China fuel oil will increase. However, the shipping market is weak and the midstream and downstream users have high inventories, and short-term action is insufficient. In the long run, the current price of fuel in South China has basically dropped to the bottom, which may spur the sentiment of replenishing replenishment in the middle and lower reaches. It is expected that the short-term fuel in South China will stabilize after falling, and only high-end manufacturers will still have room to make up for losses.