Supply-demand dynamics reverse, China low-sulfur residual fuel oil/bitumen prices on a rollercoaster ride

China's low-sulfur residual fuel oil/bitumen market experienced a sharp inverted "v"-shaped price swing in June. Prices surged by Yuan 312/t to Yuan 5,037/t in the first half on geopolitical premiums and supply tightness, before plunging Yuan 330/t to Yuan 4,707/t in the second half as geopolitical risks faded and downstream demand collapsed. Monthly sales volume fell 22.50% to 203,500 tonnes, a new low for the year.

China's low-sulfur residual fuel oil/bitumen market saw sharp price swings in June, forming a classic inverted "v" trajectory. In the first half, the weekly average price surged Yuan 312/tonne to Yuan 5,037/t, driven by geopolitical premiums and supply tightness. Then, as the US-Iran MOU was signed, international crude oil