Ship fuel demand hit by pessimistic outlook for demand

On June 16th, the fuel oil futures opened higher and maintained high volatility. The main fuel oil contract rose by more than 2%, and the low-sulfur fuel oil (LU) rose by nearly 2%. Zhongcai Futures said that during the week, inventories in Singapore and Fujairah recorded increases, while inventories in ARA decreased, but the inventory pressure was not obvious. At present, OPEC+ and Russia maintain the existing production reduction plan, the proportion of medium and heavy crude oil in the world has decreased, and raw materials have decreased. On the supply side, the export of Russian refined oil products has not been significantly affected; the maintenance of major global refineries will affect the supply of low-sulfur fuel oil in the short term. The peak of electricity consumption in summer is coming, and the overall high-sulfur fuel oil is still supported. The cracking spread of diesel oil weakened, and the price of natural gas fell, which put pressure on the price of low-sulfur fuel oil, which is also a clean energy source. The demand for marine fuel is affected by the pessimistic expectations of the demand outlook, and the support is insufficient. Unilaterally driven by crude oil, pay attention to the strategy of high sulfur and empty space with low sulfur.