1. Report Industry Investment Rating - No information provided in the content 2. Report's Core View - Last week's view: Asphalt demand is mainly for actual needs, and due to capital constraints, it is difficult to have better - than - expected performance. Although the refinery inventory is at a low level, the continuous lack of destocking in social inventory may restrict the overall upside space. It is expected that the overall trend of asphalt will be volatile and weakly follow the cost side [7]. - This week's trend analysis: This week, asphalt followed the decline of the cost - side crude oil. Combining with last week's market, it generally showed weak performance in rising and smooth decline [7]. - This week's industry data: This week, refinery supply decreased while demand increased, and refinery inventory also decreased slightly. However, the social inventory, which had originally been slow to destock, increased instead. After entering the peak season, the slow destocking speed of social inventory will restrict the upside space of asphalt prices [7]. - This week's view: Asphalt demand is still mainly for actual needs. Affected by rainy weather and capital constraints, it is difficult to have better - than - expected performance. Although the refinery inventory is at a low level, the continuous lack of destocking in social inventory may continue to restrict the upside space. It is expected that the overall trend of asphalt will be volatile and weakly follow the cost side [7]. 3. Summary by Directory 3.1 01 周度观点 (Weekly View) - Last week's view: Asphalt is mainly for actual needs, and capital constraints limit its performance. Low refinery inventory but slow social - inventory destocking restricts upside space. Expected to be volatile and follow the cost side weakly [7]. - This week's analysis: Followed the decline of crude oil, with weak rising and smooth falling performance [7]. - This week's data: Refinery supply decreased, demand increased, refinery inventory dropped slightly, but social inventory rose. Slow social - inventory destocking restricts price upside [7]. - This week's view: Affected by weather and capital, asphalt is for actual needs. Low refinery inventory and slow social - inventory destocking may restrict upside. Expected to be volatile and follow the cost side weakly [7]. 3.2 02 数据概览 (Data Overview) 3.2.1 沥青期货走势、月差、基差 (Asphalt Futures Trend, Monthly Spread, and Basis) - Data on asphalt futures main contract price, monthly spread (BU9 - BU12), and basis in East China and Shandong regions are presented in graphical form, with data sources from Wind and Steel Union Data [9][10][11] 3.2.2 沥青供应 (Asphalt Supply) - Graphs show asphalt plant operating rate, weekly production, refinery asphalt profit, and the profit difference between asphalt and fuel oil multiplied by the asphalt operating rate. Data source is Steel Union Data [12][13][14] 3.2.3 沥青需求 (Asphalt Demand) - Graphs display asphalt shipment volume, apparent consumption, paver sales, and paver sales multiplied by apparent consumption. Data source is Steel Union Data [15][16][17] 3.2.4 沥青进出口 (Asphalt Import and Export) - Graphs show asphalt import and export volumes, import windows in East China and South China, and the price differences between imported and domestic mainstream prices. Data source is Steel Union Data [18][19][20] 3.2.5 沥青库存 (Asphalt Inventory) - Graphs present refinery inventory, social inventory, futures inventory, and monthly futures delivery volume. Data source is Steel Union Data [21][22][23] 3.2.6 山东沥青供需库 (Supply, Demand, and Inventory of Shandong Asphalt) - Graphs show the operating rate, shipment volume, refinery inventory, and social inventory of Shandong asphalt. Data source is Steel Union Data [24][25][26] 3.2.7 华东沥青供需库 (Supply, Demand, and Inventory of East China Asphalt) - Graphs show the operating rate, shipment volume, refinery inventory, and social inventory of East China asphalt. Data source is Steel Union Data [27][28][29] 3.2.8 华南沥青供需库 (Supply, Demand, and Inventory of South China Asphalt) - Graphs show the operating rate, shipment volume, refinery inventory, and social inventory of South China asphalt. Data source is Steel Union Data [30][31][32] 3.2.9 检修信息 (Maintenance Information) - Information on production enterprises' maintenance of atmospheric - vacuum distillation units is provided, including enterprise names, maintenance units, production capacities, maintenance start times, and end times. The total annual production capacity of the maintenance units is 1836 tons/year, and the maintenance loss is 616,000 tons [33]

1. Report Industry Investment Rating - Not mentioned in the provided content 2. Core Viewpoints of the Report - The report maintains a long - term bearish view on oil prices from the perspectives of fundamentals, OPEC+ industry policies, and the sudden cooling of the US employment market. However, the market may be overly optimistic about the risk of Russian oil disruptions. Short - term oil prices may be slightly undervalued, but it still depends on event developments [6]. 3. Summary by Directory 3.1 Weekly Viewpoints - Last week's monthly report view: In August, attention should be paid to the trend of diesel cracking. In the case of poor gasoline consumption, diesel cracking led the refinery's refining economy. If diesel cracking continues to weaken, it will damage the refinery's operating rate, making it difficult for the crude oil consumption side to resist the increasing supply pressure, putting pressure on oil prices in August [6]. - This week's trend analysis: Oil prices continued to decline this week. With the upcoming meeting between the US and Russian presidents and the potential US - Russia - Ukraine talks, concerns about Russian oil disruptions have eased, and the pressure of OPEC+ production increase has been magnified as crude oil gradually moves out of the traditional consumption peak season [6]. - Specific influencing factors: Western near - month spreads are continuously weakening; OPEC+ is increasing production steadily and has further room for production increase; the situation of negotiating while imposing sanctions is more likely, and attention should be paid to the negotiation progress; the US employment data has a significant negative impact, triggering a black - swan event and increasing the probability of the Fed's interest rate cut, which is bearish for the market [6]. 3.2 Weekly Highlights - Western near - month spreads: WTI and Brent spreads in the Western market are continuously weakening, indicating a slowdown in immediate supply and demand. The spreads in the Eastern market are also at a relatively low level after the contract roll - over, but Saudi Arabia's increase in the official selling price in Asia is expected to drive a slight upward movement in the spreads [10]. - Oil price decline and cracking: As oil prices have weakened recently, cracking in the Western market has stabilized, while the Eastern market remains weak [12]. - Global spot cracking: Gasoline cracking has been boosted by the decline in the cost side, but the overall performance this year is mediocre, and the rebound space is limited. Diesel cracking has generally fluctuated and has not expanded with the decline in the cost side. Asian cracking is weak mainly due to the limited rebound in gasoline cracking and the continuous decline in diesel cracking [14]. - Global refining economy: The recent decline in refining economy is synchronized with the decline in diesel cracking. The refining economy in Asia is relatively worse and has even entered a loss - making state, which is in line with the relatively weak Asian cracking. A decline in refining economy is generally expected to affect the future refinery operating rate, i.e., crude oil demand [17]. - Global diesel inventory: The diesel inventories of the world's major consumer countries, the US and China, are at multi - year lows. The diesel inventory in Northwest European ports is relatively neutral, and the middle - distillate inventory in Singapore has been declining and is at a low level. The low diesel inventory is mainly due to raw material issues, such as the Western rejection of Russian Urals crude oil and Russian refined products, and OPEC+ Middle Eastern countries' preference for producing higher - priced light crude oil during the additional voluntary production cuts [20]. - US gasoline demand: This year, the demand data during the US driving peak season has been dismal. The four - week smoothed gasoline implied demand has been below the 9 million barrels per day mark for four consecutive weeks. The weak demand is consistent with the weak gasoline cracking. The relatively low gasoline price this year has not stimulated the demand, which may reflect that Americans are choosing shorter - distance self - driving trips and reducing travel budgets, especially among low - income groups [23]. - OPEC+ production increase: Except for Kazakhstan, which has been over - producing sustainably, the other seven countries have well - implemented the production plan by June. OPEC+ policy has shifted from price protection to market - share protection. OPEC+ plans to increase production by 547,000 barrels per day in September and end the 2.2 million barrels per day voluntary production cuts by the end of September, one year earlier than the original plan. OPEC+ still has room to further reduce production cuts, which will imbalance the market supply - demand gap as the crude oil demand gradually declines from the traditional peak season [24][25]. - Russian oil disruptions: Recent statements by US and Russian officials have led the market to believe that Russian oil disruptions have eased, and oil prices have declined after giving up the risk premium. However, it is more likely that the US will promote the Russia - Ukraine peace talks while imposing sanctions on Russia. Attention should be paid to the details of Trump's sanctions on August 8 and the negotiation process. Unless a large amount of Russian oil is trapped in Russia and unable to be exported, the impact of changes in oil trade flows on the global supply - demand pattern is limited. If the Russia - Ukraine peace talks are successful and Russian oil returns to the Western market, it will be bearish for the market [29]. - US employment data: The US non - farm payrolls data has been significantly revised downward, triggering a black - swan event. This has led to an increase in the probability of the Fed's interest rate cut, and the market's basic expectation for the US economy has shifted back to stagflation. The credibility of future economic data may be questioned, which will lead to irrational interpretations [30]. 3.3 Price, Spread, and Cracking - Crude oil futures and spot trends: The report presents various price trends of crude oil futures and spot, including OPEC basket price, Cushing WTI, European Brent, Dubai crude, etc. [38]. - Crude oil positions: It shows the net long positions of Brent and WTI futures and options, as well as the relationship between prices and the net long - position ratios of different types of traders [40][43]. - Crude oil futures structure and spreads: It includes the futures structure of WTI, Brent, Oman, and SC, as well as month - on - month spreads such as M1 - M2, M1 - M3, etc. [46][49]. - Cross - market futures and spot spreads: Presents cross - market spreads such as Brent - WTI, Brent - Oman, etc., in both futures and spot markets [52][55]. - Saudi OSP: Saudi Arabia has adjusted the official selling prices for different regions in September. It has increased the premiums for Asia and the Americas and decreased the premiums for Europe [26]. - Refined product prices and cracking: It shows the prices and cracking spreads of refined products in futures and spot markets, including gasoline, diesel, and other products in different regions such as the US, Europe, and Asia [67][72]. 3.4 Supply - Demand Inventory Balance Sheet - Global crude oil supply: It includes the total supply of global, non - OPEC+, OPEC, and OPEC+ crude oil, as well as the supply from major non - OPEC countries such as the US, the former Soviet Union region, China, and Brazil [88][91]. - Global crude oil demand: It includes the total demand of OECD, non - OECD, and global crude oil, as well as the demand from major countries such as the US, China, India, and Brazil [112][118]. - Crude oil inventory: It shows the inventory data of different regions, including the US, OECD, Europe, Japan, etc., as well as the inventory of different types of refined products such as gasoline, diesel, and jet fuel [121][128]. - EIA balance sheet: The EIA balance sheet shows that the global crude oil supply has exceeded demand from 2025Q1 to 2026Q2, and the surplus is gradually increasing [142]. 3.5 EIA Weekly Report and Others - EIA weekly report main data: It includes data on crude oil production, commercial crude oil inventory, refinery operating rate, and total crude oil chain inventory [157]. - Supply: It shows the production data of various refined products such as gasoline, distillate oil, jet fuel, residual fuel oil, and propane - propylene [160][163]. - Refining demand: It includes data on refinery crude oil input, refinery operating rate, and refinery refining capacity [166]. - Terminal apparent demand: The four - week smoothed terminal apparent demand data for total demand, gasoline, distillate oil, jet fuel, etc. are presented [169]. - Inventory: It includes data on crude oil inventory (commercial crude oil inventory, strategic petroleum reserve, etc.) and refined product inventory (gasoline, distillate oil, jet fuel, etc.) [175][178]. - Import and export: It shows data on crude oil imports, exports, net imports, and refined product net exports [184]. - Other data: It also includes data on domestic subway passenger volume, traffic delay and congestion index, flight numbers in China, PMI of Western and other major countries, Fed's monetary policy, interest rate market, and related energy prices [204][213][223].

Group 1: Report Summary - The report focuses on the EIA weekly data of the US oil market as of August 1, 2025 [1][2] Group 2: Main Data Highlights - US commercial crude oil inventory was 423.662 million barrels, a week - on - week decrease of 3.029 million barrels, exceeding the expected decrease of 600,000 barrels. Cushing inventory increased by 453,000 barrels, and strategic reserve inventory increased by 235,000 barrels [2][3] - Gasoline inventory decreased by 1.323 million barrels, exceeding the expected decrease of 400,000 barrels. Distillate inventory decreased by 565,000 barrels, contrary to the expected increase of 800,000 barrels [2][3] - US crude oil production decreased by 30,000 barrels per day to 13.284 million barrels per day. Net imports decreased by 794,000 barrels per day to 2.644 million barrels per day, and processing volume increased by 213,000 barrels per day to 17.124 million barrels per day [3] - The four - week smoothed US crude oil terminal apparent demand decreased by 185,250 barrels per day to 20.61575 million barrels per day. Gasoline apparent demand decreased by 29,750 barrels per day to 8.912 million barrels per day, and jet fuel apparent demand decreased by 55,000 barrels per day to 1.77675 million barrels per day. Distillate apparent demand increased by 13,000 barrels per day to 3.52275 million barrels per day [3] Group 3: Report Analysis - Last week, US commercial crude oil inventory declined more than expected. Refinery operating rate reached a new high of 96.9% this year, up 1.5%, driving an increase in crude oil processing volume. However, the processing volume was not a new high due to the decrease in refinery capacity from 18.347 million barrels per day at the beginning of the year to 18.089 million barrels per day. Export growth also contributed to the inventory decline [4] - Gasoline demand remained persistently low, with the four - week smoothed data below 9 million barrels per day for four consecutive weeks during the peak season. Compared with previous years, this year's gasoline demand was only better than that in 2020 and 2022, indicating that Americans are more inclined to short - distance travel and cut travel budgets. Distillate demand was stable, and the slight inventory decline was mainly due to increased exports [6] - This week's EIA report seemed bullish as crude oil and major refined product inventories declined. However, the gasoline apparent demand below 9 million barrels per day during the peak season weakened the positive impact. Overall, the US gasoline consumption market this year was disappointing compared with previous years at similar price levels. After the data release, oil prices were initially stable and then declined due to news of potential US - Russia - third - country leader talks [8]

Report Overview - The report is an EIA weekly data report released on August 7, 2025, focusing on the oil market in the United States [1] 1. Report Industry Investment Rating - Not provided 2. Core Viewpoints - The gasoline demand remains persistently low during the peak season, and the US gasoline consumption market this year is disappointing compared to previous years [1][6][8] - The EIA report seems bullish on the surface as both crude oil and major refined oil inventories have declined, but the weak gasoline demand undermines the positive impact [8] 3. Summary by Key Data Crude Oil Inventory - As of August 1, the US commercial crude oil inventory was 423.662 million barrels, a week - on - week decrease of 3.029 million barrels, exceeding the expected decrease of 600,000 barrels. The Cushing inventory increased by 453,000 barrels, and the strategic reserve inventory increased by 235,000 barrels [2][3] Refined Oil Inventory - Gasoline inventory decreased by 1.323 million barrels, exceeding the expected decrease of 400,000 barrels. Distillate oil inventory decreased by 565,000 barrels, contrary to the expected increase of 800,000 barrels [2] Production and Consumption Data - US crude oil production decreased by 30,000 barrels per day to 13.284 million barrels per day. Net imports decreased by 794,000 barrels per day to 2.644 million barrels per day. Crude oil processing volume increased by 213,000 barrels per day to 17.124 million barrels per day [3] - The four - week smoothed US crude oil terminal apparent demand decreased by 185,250 barrels per day to 20.61575 million barrels per day. Gasoline apparent demand decreased by 29,750 barrels per day to 8.912 million barrels per day. Jet fuel apparent demand decreased by 55,000 barrels per day to 1.77675 million barrels per day. Distillate oil apparent demand increased by 13,000 barrels per day to 3.52275 million barrels per day [3] 4. Report Comments Crude Oil - Last week, the US commercial crude oil inventory decreased more than expected. The refinery utilization rate reached a new high this year, rising 1.5% to 96.9%, driving an increase in crude oil processing volume. However, the processing volume is not a new high due to the decrease in refinery capacity. In addition, increased exports also contributed to the inventory decline [4] Refined Oil - Gasoline demand is continuously weak, with the four - week smoothed data below 9 million barrels per day for four consecutive weeks during the peak season. This indicates that Americans are more inclined to short - distance travel and cut travel budgets this year. Distillate oil demand is stable, and the slight decrease in inventory is mainly due to increased exports [6] 5. Market Reaction - After the data release, oil prices remained stable initially and then declined as Trump announced productive US - Russia talks and the possibility of a face - to - face meeting among the three leaders as early as next week, leading to a retreat in risk premiums [8]

Report Summary 1. Report Industry Investment Rating No investment rating information is provided in the report. 2. Core Viewpoints - The EIA weekly data shows that gasoline demand remains persistently low during the peak season, and although the report seems bullish on the surface, the weak gasoline demand dampens the positive sentiment [1][8]. - Compared with previous years, this year's US gasoline consumption market is disappointing given the current price level [8]. 3. Summary by Related Catalogs Main Data - As of August 1st, US commercial crude oil inventories were 423.662 million barrels, a week - on - week decrease of 3.029 million barrels, exceeding the expected decrease of 0.6 million barrels. Cushing inventories increased by 0.453 million barrels, and strategic reserve inventories increased by 0.235 million barrels [2]. - Gasoline inventories decreased by 1.323 million barrels, exceeding the expected decrease of 0.4 million barrels, and distillate inventories decreased by 0.565 million barrels, contrary to the expected increase of 0.8 million barrels [2]. - US crude oil production decreased by 30 thousand barrels per day to 13.284 million barrels per day, and net imports decreased by 794 thousand barrels per day to 2.644 million barrels per day [3]. - Crude oil processing volume increased by 213 thousand barrels per day to 17.124 million barrels per day, and refinery utilization rate rose 1.5% to 96.9% [3][4]. Report Commentary - The decline in US commercial crude oil inventories was due to the increase in refinery utilization rate (reaching a new high this year) and exports. However, the increase in the utilization rate was partly due to the reduction in refinery capacity [4]. - Gasoline demand remained weak, with the four - week smoothed data below 9 million barrels per day for four consecutive weeks during the peak season, indicating that Americans prefer short - distance travel and cut travel budgets this year [6]. - Distillate demand was stable, and the slight decline in inventories was mainly due to increased exports [6]. - After the data release, oil prices initially held steady but then fell due to the news of potential US - Russia - related talks [8].

1. Report Industry Investment Rating - Not provided in the document 2. Core View of the Report - In August, attention should be paid to the trend of diesel cracking. In the case of poor gasoline consumption, diesel cracking has led the refining economy of refineries. If diesel cracking continues to weaken, it will directly damage the refinery operating rate, making it difficult for the crude oil consumption side to resist the increasing supply pressure, thus putting pressure on oil prices in August. However, there are several major disturbing factors in the market in August, such as Russian oil sanctions and trade negotiations that bundle the purchase of Russian oil, which may affect Russian oil supply and reignite diesel cracking. In addition, whether OPEC+ will further withdraw from production cuts in the fourth quarter is also worthy of attention [8] 3. Summary by Relevant Catalogs 3.1 Monthly View - **Last month's view**: The northern hemisphere consumption peak season can support the market to some extent, resist the supply increase pressure, and make short - term oil prices fluctuate slightly stronger. But the peak of the consumption season is about to end, and then the supply pressure will gradually increase, with limited upside space. Key events this month, such as the end of the tariff suspension period and the follow - up negotiation of the Iranian nuclear issue, need attention [8] - **This month's trend analysis**: Oil prices fluctuated narrowly in the first half of July. With the completion of tariff negotiations between the US, Japan, and Europe, and Trump's announcement of a 10 - day ultimatum on sanctions against Russia, oil prices showed a stronger trend in the last week of July [8] - **This month's main points**: Crude oil fundamentals show that domestic oil storage makes the eastern market's monthly spread stronger, and there are signs of weakening diesel cracking; US travel consumption shows a shift from gasoline demand to jet fuel demand, indicating US consumption downgrade; Market disturbance factors include Russian oil sanctions, OPEC+ production increases, and tariff negotiations; The labor market is an important reference for the Fed to cut interest rates in the context of persistent inflation [8] 3.2 Monthly Key Points - **East - West market near - month spread differentiation**: Western market spreads (WTI and Brent) generally declined this month, indicating a slowdown in spot supply and demand, but rebounded in the last week. Eastern market spreads are still strong, which is related to China's imports [12] - **China's inventory increase and absorption**: China's cumulative change in implied crude oil inventory from March to June this year (+645) is the highest in recent years. The increase in inventory is due to falling oil prices and intentional storage. New policies to improve energy security have led to additional demand, making the eastern crude oil near - month spread stronger than the western one [15] - **Diesel cracking shows signs of weakening**: Global cracking generally maintained a volatile or strong trend this month, but showed signs of weakening before the end of the month, mainly contributed by diesel. Diesel cracking has been strong and driven the previous cracking increase, but recently it has shown signs of weakening. Gasoline cracking has been mediocre this year [17][19] - **Global diesel inventory is generally low**: Diesel inventories in the US and China, the world's major consumers, are at multi - year lows. Northwest European port diesel inventories are relatively neutral, and Singapore's middle distillate inventories are at a low level after continuous decline [22] - **Gasoline demand shifts to jet fuel demand, indicating US consumption downgrade**: US gasoline demand during the driving peak season this year was dismal, while jet fuel demand reached a five - year high. This reflects that US residents are turning to more short - distance self - driving travel and reducing travel budgets, especially in low - income groups [25] - **Market disturbance factors - Russian oil sanctions, OPEC+ meetings**: Trump's shortening of the ultimatum on Russia from 50 days to 10 days has made this short - term disturbance factor affect oil prices. The OPEC+ JMMC meeting ended in July without proposing production policy suggestions. The market expects OPEC+ to further increase production in the fourth quarter [26] - **Tariff situation**: The US has reached a new 15% tariff agreement with the EU, Japan, and South Korea, and extended the tariff suspension with China and Mexico for 90 days. Trump has signed an executive order to determine the reciprocal tariff rates for multiple countries and regions, which may drag down the global economy [28] - **Inflation and the Fed**: With the end of the downward trend of crude oil prices since April, the downward trend of inflation driven by falling energy prices is expected to slow down. The labor market is the most important consideration for the Fed to cut interest rates. The Fed is expected to cut interest rates once this year [30] - **North American hurricane forecast**: According to NOAA's forecast, the hurricane activity this year has a 60% chance of exceeding the normal level, but it is relatively calm compared to last year. Hurricanes can affect offshore drilling platforms and coastal refineries [32] 3.3 Price, Spread, Cracking - **Crude oil futures and spot trends**: Multiple charts show the trends of various crude oil futures and spot prices, including OPEC basket price, WTI, Brent, etc. [35] - **Brent and WTI crude oil positions**: Charts present the net long positions of Brent and WTI futures and options, as well as the relationship between price and the proportion of net long positions of different types of traders [37][40] - **Crude oil futures structure, monthly spread, cross - market spreads**: Data shows the structure, monthly spreads, and cross - market spreads of WTI, Brent, Oman, and SC crude oil futures [43][46][49] - **Spot spreads**: Include cross - market, American, Asian spot spreads, and Saudi OSP. Saudi OSP for different grades of oil to different regions has changed in August compared to July [52][55][58][59] - **Refined product prices and cracking**: Charts show the futures and spot prices and cracking spreads of refined products such as gasoline, diesel, and jet fuel in different regions [64][66][69][72] 3.4 Supply - Demand Inventory Balance Sheet - **Global and regional crude oil supply**: Data on global, non - OPEC+, OPEC, and OPEC+ crude oil supply, as well as the supply of major non - OPEC and OPEC countries, are presented. The global rig count and US crude oil rig - related data are also included [85][88][91][94][100] - **Global and regional crude oil demand**: Data on global, OECD, and non - OECD crude oil demand, as well as the demand of major countries in OECD and non - OECD regions, are provided [109][112][115] - **Crude oil inventory**: Inventory data of the US, OECD, and other regions, including total inventory, commercial inventory, and strategic reserve, are given. The EIA balance sheet shows that the supply - demand balance is positive from 2025Q1 to 2025Q4 [118][139] 3.5 EIA Weekly Report and Others - **EIA weekly report main data**: Include crude oil production, commercial crude oil inventory, refinery operating rate, and total crude oil chain inventory [154] - **Supply**: Data on the production of crude oil, gasoline, distillates, jet fuel, residual fuel oil, propane - propylene, and their yields are provided [157][160] - **Refining demand**: Information on refinery crude oil input, operating rate, and refining capacity is presented [163] - **Four - week smoothed terminal apparent demand**: Data on total demand, gasoline, distillates, and jet fuel demand are shown [166]

1. Report Industry Investment Rating - Not provided in the content 2. Core Viewpoints of the Report - Last week's main view was that anti - involution had little impact on the cost - end crude oil, asphalt was mainly for rigid demand, and it was difficult to have an unexpected performance due to capital constraints. The refinery's weekly operation rate decreased, but it was expected to rebound slightly next week. Although the refinery inventory was at a low level, the continuous non - reduction of social inventory might limit the overall upside space. The asphalt price was expected to fluctuate and follow the cost - end [7]. - This week, the asphalt price rose slightly, generally following the trend of cost - end crude oil but relatively weakly. This week, the supply and demand of refineries both increased, but the increase in demand was less than that in the operation rate. After the reduction of refinery inventory, it was at a low level in the same period, but the reduction speed of social inventory was slow. After entering the peak season, the reduction speed of social inventory would restrict the upward space of asphalt prices. The main view this week was that asphalt was still mainly for rigid demand, and it was difficult to have an unexpected performance due to capital constraints. Although the refinery inventory was at a low level, the continuous non - reduction of social inventory might limit the overall upside space. The asphalt price was expected to fluctuate and weakly follow the cost - end [7]. 3. Summary According to the Directory 3.1 Weekly Viewpoint - Last week's main view: Anti - involution had little impact on the cost - end crude oil. Asphalt was mainly for rigid demand and was restricted by capital. The refinery's weekly operation rate decreased, and it was expected to rebound slightly next week. Low refinery inventory and non - reducing social inventory might limit the upside [7]. - This week's situation: The asphalt price rose slightly, following the crude oil trend weakly. Supply and demand of refineries both increased, with demand growth lower than the operation rate increase. Refinery inventory was at a low level after reduction, and slow social inventory reduction would restrict price increases [7]. - This week's main view: Asphalt was for rigid demand, restricted by capital. Low refinery inventory and non - reducing social inventory might limit the upside. The price was expected to fluctuate and weakly follow the cost - end [7]. 3.2 Data Overview 3.2.1 Asphalt Futures Trends, Monthly Spreads, and Basis - The data includes asphalt's main price, the spread between September and December contracts, and the basis in East China and Shandong regions. The data sources are Wind and Steel Union Data [9][10][11]. 3.2.2 Asphalt Supply - The data shows asphalt device operation rate, weekly output, refinery asphalt profit, and the profit difference between asphalt and fuel oil multiplied by the asphalt operation rate. The data source is Steel Union Data [12][13][14]. 3.2.3 Asphalt Demand - The data covers asphalt shipment volume, apparent consumption, paver sales, and paver sales multiplied by asphalt apparent consumption. The data source is Steel Union Data [15][16][17]. 3.2.4 Asphalt Import and Export - The data includes asphalt import and export volumes, and the import windows in East China and South China. The data source is Steel Union Data [18][19][20]. 3.2.5 Asphalt Inventory - The data shows refinery inventory, social inventory, futures inventory, and monthly futures delivery volume. The data source is Steel Union Data [21][22][23]. 3.2.6 Shandong Asphalt Supply, Demand, and Inventory - The data includes operation rate, shipment volume, refinery inventory, and social inventory in Shandong. The data source is Steel Union Data [24][25][26]. 3.2.7 East China Asphalt Supply, Demand, and Inventory - The data includes operation rate, shipment volume, refinery inventory, and social inventory in East China. The data source is Steel Union Data [27][28][29]. 3.2.8 South China Asphalt Supply, Demand, and Inventory - The data includes operation rate, shipment volume, refinery inventory, and social inventory in South China. The data source is Steel Union Data [30][31][32]. 3.2.9 Production Enterprise Maintenance Information - Multiple enterprises had their atmospheric and vacuum distillation units under maintenance. The total annual production capacity of these enterprises was 1936 tons, and the maintenance loss was 604,000 tons [33].

Group 1: Report Investment Rating - The report is slightly bearish on the oil market [8] Group 2: Core Viewpoints - The large increase in US commercial crude oil inventories was mainly due to import - export disturbances, with high domestic refinery operating rates but weak overseas demand [4][8] - Gasoline demand this year has been disappointing, reflecting concerning macro - economic implications despite low retail prices [6][8] - The continuous increase in distillate inventories is beneficial for alleviating the strong distillate cracking situation but is not good news for oil prices [6][8] - Recent oil prices have remained strong due to factors such as Trump's ultimatum to Russia, smooth trade negotiations, and better - than - expected Q2 economic data, and the EIA report cannot reverse the positive market sentiment [8] Group 3: Summary by Related Data Crude Oil Inventory - As of July 25, US commercial crude oil total inventory was 426,691 thousand barrels, a sharp increase of 7,698 thousand barrels from the previous week, contrary to the expected decrease of 1,100 thousand barrels; Cushing inventory increased by 690 thousand barrels; strategic reserve inventory increased by 238 thousand barrels [2][3] Product Oil Inventory - Gasoline inventory decreased by 2,724 thousand barrels, exceeding the expected decrease of 600 thousand barrels; distillate inventory increased by 3,635 thousand barrels, exceeding the expected increase of 300 thousand barrels [2][3] Production and Consumption - US crude oil production increased by 41 thousand barrels per day to 13,314 thousand barrels per day; net imports increased by 1,317 thousand barrels per day to 3,438 thousand barrels per day; processing volume decreased by 25 thousand barrels per day to 16,911 thousand barrels per day [3] - US crude oil terminal apparent demand (four - week smoothing) increased by 225 thousand barrels per day to 20,801 thousand barrels per day; gasoline apparent demand (four - week smoothing) increased by 128 thousand barrels per day to 8,941.75 thousand barrels per day; distillate apparent demand (four - week smoothing) decreased by 109.5 thousand barrels per day to 3,509.75 thousand barrels per day; jet fuel apparent demand (four - week smoothing) increased by 89.75 thousand barrels per day to 1,831.75 thousand barrels per day [3] Refinery and Demand - The refinery operating rate decreased 0.1% to 95.4% [4] - Total terminal demand for refined oil increased slightly by 1%, but gasoline demand was still lower than last year and the 5 - year average affected by the COVID - 19 period [6]

Report Industry Investment Rating - Not provided in the document Core Views of the Report - Last week's view was that the Northern Hemisphere's consumption peak season could support the market to some extent, but the supply pressure would gradually increase later, and the upside space was limited. This week, oil prices fluctuated narrowly, with a slightly stronger trend in the second half of the week due to tariff negotiations and geopolitical factors. The short - term fluctuations are mainly affected by tariff negotiations and geopolitical disturbances, while the long - term view remains bearish due to strong supply and the fading consumption peak season [8]. - The crude oil fundamentals show that the East market's month - spread is strong due to domestic oil storage, and diesel leads the refined oil cracking. The US gasoline demand has slumped during the peak season, indicating poor US consumption ability. The domestic anti - involution has little impact on crude oil, and attention should be paid to the progress of US tariff negotiations and the final tax rates [8]. Summary According to the Directory 1. Weekly Views - Last week's view was that the consumption peak season could support the market, but the supply pressure would increase later. This week, oil prices fluctuated narrowly, with a slightly stronger trend in the second half due to tariff negotiations. The short - term is affected by tariff and geopolitical factors, and the long - term is bearish [8]. - Key points include the strong East market month - spread, weak US gasoline demand, little impact of anti - involution on crude oil, and attention to tariff negotiations [8]. 2. Weekly Highlights - **East - West Market Spread Differentiation**: Western market spreads (WTI and Brent) are falling, while the East market spreads are strong, related to China's imports [12]. - **China's Inventory Increase**: China's crude oil implied inventory from March to June 2025 reached a new high in recent years. The increase is due to price drops and strategic storage, which boosts the East market's month - spread [15]. - **Diesel Cracking Leading**: Diesel cracking leads the refined oil cracking market, with all regional 211 cracking (higher diesel proportion) stronger than 321 cracking [18]. - **Global Spot Cracking**: Diesel cracking is strong, while gasoline cracking is downward, corresponding to weak US gasoline consumption. The long - term supply reduction of Saudi and Russia supports diesel cracking [20]. - **Global Diesel Inventory**: Diesel inventories in the US and China are at multi - year lows, while the inventory in Northwest Europe is neutral, and Singapore's middle distillate inventory is declining [23]. - **US Gasoline Demand**: US gasoline demand slumped during the peak driving season, with inventory being neutral. Low demand at current prices deepens the expectation of poor US consumption in the second half of the year [26]. - **Domestic Anti - Involution**: It has little impact on crude oil supply. If it occurs in refineries, it may be bearish for crude oil but bullish for chemical by - products [29]. - **Tariff Negotiations**: The US has made progress in some tariff negotiations. Attention should be paid to the results and final tax rates, which may affect the US economy and Fed policies [30]. - **North American Hurricane Forecast**: This year's hurricane activity is expected to be 60% above average, which may disrupt supply. Currently, there is no hurricane in the Gulf of Mexico, but there is a potential cyclone [32]. 3. Price, Spread, and Cracking - **Crude Oil Futures and Spot Prices**: Multiple charts show the trends of various crude oil futures and spot prices, including OPEC, WTI, Brent, etc. [35][52] - **Crude Oil Positions**: The positions of WTI and Brent futures and options are presented, including those of management funds, producers, etc. [37][40] - **Crude Oil Futures Structure and Month - Spread**: The futures structure and month - spread of WTI, Brent, Oman, and SC are shown [43][46] - **Cross - Market Spreads**: Cross - market futures and spot spreads, such as Brent - WTI, are presented [49][52] - **Saudi OSP**: Saudi's official selling prices (OSP) for different grades of oil to different regions in August and July are provided, showing price changes [59] - **Refined Product Prices and Cracking**: The prices and cracking spreads of refined products, including gasoline, diesel, etc., in different regions are presented [64][72] 4. Supply - Demand Inventory Balance Sheet - **Global Crude Oil Supply**: The supply of global, non - OPEC, OPEC, and OPEC+ crude oil is shown, with forecasts [85] - **Non - OPEC and OPEC Supply by Country**: The supply of non - OPEC countries (US, Russia, China, etc.) and OPEC countries (Saudi, Iraq, etc.) is presented [88][94] - **Global Rig Count**: The number of oil rigs in the US, Canada, and globally is shown [100] - **Refinery Shutdowns**: The shutdown volumes of CDU and FCC units globally and in different regions are presented [106][108] - **Global Crude Oil Demand**: The demand of OECD, non - OECD, and global crude oil is shown, with forecasts [110] - **Crude Oil Inventory**: The inventories of the US, OECD, and other regions, including commercial and strategic inventories, are presented [119] - **EIA Balance Sheet**: The EIA's supply, consumption, and balance data for 2025 and 2026 are provided [140] 5. EIA Weekly Report and Others - **EIA Weekly Report Main Data**: Data on crude oil production, commercial inventory, refinery utilization rate, etc., are presented [155] - **Supply and Demand Data**: Data on the production of various refined products, refinery demand, terminal demand, and inventory are provided [158][164][167] - **Inventory Data**: Data on crude oil and refined product inventories, including commercial and strategic inventories, are presented [173][176] - **Import and Export**: Not detailed in the remaining content

1. Report Investment Rating - No investment rating information is provided in the report. 2. Core Viewpoints - Last week's view: Affected by the capital side and rainfall, asphalt demand was mainly for immediate needs, with little chance of exceeding expectations. Currently, refinery operations are average, some Sinopec refineries have lowered prices, and most actual market transactions are for low - priced supplies. It was expected that asphalt prices would fluctuate overall, and influenced by the cost side, the center might be slightly stronger, but the upside potential was limited [7]. - This week's price movement: This week, asphalt prices fluctuated within a narrow range, generally following the trend of crude oil on the cost side [7]. - This week's industry data: This week, refinery supply decreased while demand increased. After the reduction of refinery inventories, they were at a low level compared to the same period. The reduction rate of social inventories was slow. After entering the peak season, the reduction rate of social inventories would restrict the upside space of asphalt prices [7]. - This week's view: The anti - involution trend has little impact on the cost - side crude oil. Asphalt demand remains mainly for immediate needs and is restricted by capital, so it is difficult to exceed expectations. Weekly refinery operations decreased, but a slight rebound is expected next week. Although refinery inventories are currently at a low level, the continuous lack of reduction in social inventories may restrict the overall upside space. It is expected that asphalt prices will fluctuate overall, mainly following the cost side [7]. 3. Summary by Directory 3.1 Weekly Viewpoints - Last week's prediction was that asphalt would be range - bound with a slightly upward - biased center due to cost, but limited upside. This week, asphalt followed crude oil in a narrow - range fluctuation. Current industry data shows reduced supply and increased demand at refineries, low refinery inventories, and slow - moving social inventories. The current view is that asphalt will continue to fluctuate following the cost side, with upside limited by non - declining social inventories [7]. 3.2 Data Overview 3.2.1 Asphalt Futures Trends, Spreads, and Basis - Graphs present asphalt futures trends, including the price of the main contract, spreads between September and December contracts, and basis in East China and Shandong regions, with data sourced from Wind and Steel Union Data [10][11]. 3.2.2 Asphalt Supply - Graphs show asphalt plant operating rates, weekly production, refinery asphalt profits, and the profit difference between asphalt and fuel oil multiplied by the asphalt operating rate, with data from Steel Union Data [13][14]. 3.2.3 Asphalt Demand - Graphs display asphalt shipment volumes, apparent consumption, paver sales, and the product of paver sales and apparent asphalt consumption, using data from Steel Union Data [16][17]. 3.2.4 Asphalt Imports and Exports - Graphs illustrate asphalt import and export volumes, as well as import windows in East and South China, with data from Steel Union Data [19][20]. 3.2.5 Asphalt Inventory - Graphs show refinery inventories, social inventories, futures inventories, and monthly futures delivery volumes, with data from Steel Union Data [22][23]. 3.2.6 Shandong Asphalt Supply, Demand, and Inventory - Graphs present the operating rate, shipment volume, refinery inventory, and social inventory of asphalt in Shandong, with data from Steel Union Data [25][26]. 3.2.7 East China Asphalt Supply, Demand, and Inventory - Graphs show the operating rate, shipment volume, refinery inventory, and social inventory of asphalt in East China, with data from Steel Union Data [28][29]. 3.2.8 South China Asphalt Supply, Demand, and Inventory - Graphs display the operating rate, shipment volume, refinery inventory, and social inventory of asphalt in South China, with data from Steel Union Data [31][32]. 3.2.9 Refinery Maintenance - A table lists refineries with maintenance, including the production enterprise, maintenance device, capacity, start time, and end time of maintenance. The total annual capacity of these refineries is 2016 tons, and the maintenance loss is 641,500 tons [33].