Institutions: Low-sulfur fuel oil may face downward pressure in the coming weeks

On Monday (November 14), the main fuel oil contract FU2301 closed down 0.
91% at 2841 yuan / ton; The main contract for low-sulfur fuel oil LU2301 closed down 0.
64% at 4778 yuan / ton
.
From a fundamental point of view, the market structure of high and low sulfur is generally stable
.
Although the east-west arbitrage window is currently closed due to high freight rates, the arbitrage volume in November is expected to be higher than in October, regional production is also rising, and the low-sulphur market may face downward pressure
in the coming weeks.
The fundamentals of the high-sulphur fuel oil market have been slightly solid in the recent week, and while a small amount of demand from China has provided some support for the fundamentals so far, the inflow of Russian goods will remain relatively stable
as there is still ample supply in the Singapore region.
From the current high and low sulfur fundamentals, the structure of low sulfur that was significantly stronger than high sulfur may remain slightly narrowed
.