[White oil supply] Overview of the white oil market in the first quarter

Entering the first quarter of 2020, the white oil market price has plummeted to a low level. Since mid-February, the price has started to decline. Mainly affected by the outbreak of the epidemic, limited logistics and transportation, and delayed downstream recovery, resulting in a backlog of inventory in refineries, and major Refineries have reduced operating loads or temporarily suspended operations for emergency hedging, and have lowered export prices to stimulate shipments. In March, white oil continued to fluctuate and decline due to the plummeting crude oil price, and the market did not improve significantly in early April. According to statistics from Zhongyu Information, the average price of 5# white oil in the domestic market is 4,387.5 yuan/ton, which is a significant decrease of 1,265 yuan/ton from the price in early February, equivalent to a percentage of 22.38%. Some refineries’ 5# industrial white oil has fallen below 4,387.5 yuan/ton in March. 4,000 yuan/ton mark. The domestic mainstream price of 3# industrial white oil is 5300-5900 yuan/ton, the 5# mainstream price is 4150-5600 yuan/ton, and the 7# mainstream price is 5300-5600 yuan/ton.