The European Commission proposes to impose a fifth round of sanctions on Russia, mainly short-term fuel oil or wide range shocks

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On April 5, local time, European Commission President von der Leyen said that a fifth round of sanctions against Russia has been proposed, including a ban on coal imports from Russia; A total ban on transactions with four major banks, including the Russian Foreign Trade Bank (VTB Bank); Ban on the export of semiconductors, automobiles and transport equipment to Russia, totaling about 10 billion euros; Prohibition of Russian companies from participating in procurement tenders in EU countries; prohibits any form of financial support for Russian state institutions; There are six contents
such as banning Russian ships from docking at EU ports.

According to Kpler, Russia's fuel oil shipments in March were only 3.
91 million tons, down 1.
62 million tons or 29% from February, compared with 27% (1.
46 million tons)
in the same period last year.

Institutional perspectives

Daietsu Futures:

Fundamentals: It is difficult to substantially alleviate the situation between Russia and Ukraine, the West imposes more sanctions on Russia and superimposes the suspension of Iranian nuclear negotiations, and the cost of crude oil fluctuates at a high level; Singapore's fuel supply is tight, the demand for power generation in the Middle East and South Asia is gradually transitioning to the peak season, and the demand for feed from refineries in the United States is strong
.

Inventories: In the week ended March 31, Singapore had 20.
94 million barrels of high- and low-sulphur fuel oil, down 6.
56% from the previous week, with inventories below
the five-year average.

Expectations: The cost side support is weak, the fuel fundamentals are stable and good, and the short-term fuel is expected to run in
a wide range.
Fuel oil FU2209: intraday operation in the range of 3680-3780
.

Everbright Futures:

Overall, due to the restriction of Russian fuel oil exports, the high-sulfur fuel oil that previously flowed to Asia is being shipped to the United States, and the shortage of superimposed sulfur reduction and viscosity raw materials, the supply of high and low sulfur in the Singapore market is relatively tight; And with the rise in temperatures in the Middle East and South Asia, the local procurement of high sulfur is also gradually starting, the fundamentals of the fuel oil market as a whole remain strong, the absolute price of fuel oil in Singapore and spot discounts continue to strengthen, while the price of FU and LU in the inner plate follows the oil price more closely
.
In the context of the current energy sanctions have not been lifted and the supply and demand of high and low sulfur itself is strong, we expect fuel oil prices to also maintain a high and wide range of shocks
.