Sinopec Economics: Residual oil costs and demand suppress prices, leading to downward pressure on prices

Recently, the residual oil market has experienced a high-level correction. As of April 21, Shandong low-sulfur residual oil was priced at 4,510 yuan/ton, down 7.96% from last Tuesday; medium-sulfur residual oil was priced at 4,450 yuan/ton, down 5.82% from last Tuesday. International crude oil prices remain volatile at high levels, and the support from residual oil costs has weakened. Due to the transmission of refined oil price reductions and the narrowing profit margins of downstream coking units, residual oil demand has been weak, putting downward pressure on prices.
Looking ahead, in the short term, the crude oil market may continue to fluctuate within a wide range, with ongoing volatility in costs. Under the background of tight supply support, residual oil prices are expected to stabilize weakly after a decline. (Zhuochuang Information)