News summary
Night oil high-sulfur contract rose 1.1ayoslot.23%ayoslot, low-sulfur contracts rose 0ayoslot.14%。EIA data showed that U.S. crude oil inventories fell more than expected, and Singapore's fuel oil inventories fell 7.89%. Israel will abolish free trade agreement with Turkey. The OPEC+ June meeting focused on production cuts. Fuel oil supply pressure continues, demand is now picking up, and prices may fluctuate.
Newsletter text
[The fuel oil futures market showed a volatile upward trend]
During night trading, due to the impact of the low settlement price the previous day, high and low sulfur fuel oil futures prices showed a volatile upward trend. Specifically, the price of the high-sulfur fuel oil 2409 contract increased by 41 yuan/ton, an increase of 1.23%, and finally closed at 3371 yuan/ton; while the price of the low-sulfur fuel oil 2408 contract also increased slightly, an increase of 0.14%, closing at 4245 yuan/ton.
[U.S. crude oil inventories fall more than expected]
Data released by the U.S. Energy Information Administration (EIA) showed that U.S. crude oil inventories fell in the week ended May 10ayoslotThe decline was 2.5 million barrels to 457 million barrels, a decline far exceeding analysts 'expectations of 543,000 barrels. This reflects the trend of increased refining activity and rising fuel demand.
[Singapore's fuel oil inventories dropped significantly]
In the week of May 17, Singapore's fuel oil inventories recorded 19.115 million barrels, a decrease of 1.638 million barrels from the previous week, a decrease of 7.89%. In addition, in the past month, Singapore's fuel oil inventories have dropped by a cumulative 3.071 million barrels, a decrease of 13.84%.
[Israel imposes additional tariffs on Turkish imports]
Israeli Finance Minister Smotrih issued a statement announcing that Israel will abolish the free trade agreement with Turkey and plans to impose a 100% tariff on goods imported from Turkey. The move is in response to Turkey's decision to suspend all import and export trade activities with Israel, which currently requires cabinet approval.
[Fuel oil market supply pressure and demand recovery intertwined]
Despite the short-term rebound in crude oil prices, there is insufficient upward momentum, and market participants will pay close attention to whether the OPEC+ June meeting will send a clearer signal to continue production cuts. For the fuel oil market, pressure on the supply side still exists, but the demand side shows signs of recovery. With the arrival of the peak season, the market's incremental expectations for fuel are also increasing. However, in the short term, fuel oil prices are expected to continue to fluctuate with crude oil prices.
[Market strategy is still based on wait-and-see]
Under the current situation, fuel oil futures prices are expected to remain volatile. Therefore, market participants are advised to remain cautious and focus on wait-and-see.