Rising supply in China offset effects of rising crude prices for VLSFO

摘要

At the Chinese port of Zhoushan,prices for VLSFO have risen by 19% from Jan.4 to Feb.18 to $508/mt($75.82/bbl)while front-month ICE Brent price climbed by 25% over the same period to $64/mt($8.73/bbl).Analysts attribute the disconnect in prices due to increased VLSFO domestic output as Chinese refiners fight for market share.In fact,VLSFO prices in Singapore posted a stronger increase of 23% to $513/mt($76.57/bbl)during the same period.Spot volumes of VLSFO traded in Zhoushan averaged 3.IK mt/d(20.8K b/d)in Jan.but eased to 2.99K mt/d(20.0K b/d)so far in Feb.,according to Argus.