Group 1: Report Industry Investment Rating - Not mentioned Group 2: Core Viewpoints of the Report - This week, the high - sulfur cracking margin declined slightly, the 380 - cst near - end ran strongly, the monthly spread oscillated at a high level, and the basis strengthened again. The low - sulfur cracking margin oscillated, the near - end monthly spread oscillated, and the basis weakened. Recently, the low - sulfur valuation has been realized, and there is room for the cracking margin and the monthly spread to decline after the supply recovers. The high - sulfur cracking margin runs strongly, with profits higher than the historical average. This year, affected by consumption tax deduction and tariff adjustment in China, the refinery feed demand for fuel oil has dropped significantly. In the shipping fuel sector, the global high - sulfur shipping fuel from January to March increased by 2% year - on - year, and that in Singapore was basically flat, while the total shipping fuel was weaker year - on - year. Recently, the net import of Saudi Arabian residue has rebounded, and Egypt's purchases continue, so the high - sulfur near - end remains strong. Pay attention to the medium - and long - term opportunity for the high - sulfur cracking margin to decline [3][4] Group 3: Key Data Summaries Rotterdam Fuel Oil | Product | 2025/05/27 | 2025/06/03 | Change | | --- | --- | --- | --- | | 3.5% HSF O Swap M1 | 398.15 | 397.26 | -0.89 | | 0.5% VLS FO Swap M1 | 442.03 | 449.90 | 7.87 | | HSFO - Brent M1 | -0.39 | -2.56 | -2.17 | | 10ppm Gasoil Swap M1 | 581.80 | 599.32 | 17.52 | | VLSFO - Gasoil M1 | -139.77 | -149.42 | -9.65 | | LGO - Brent M1 | 16.18 | 16.85 | 0.67 | | VLSFO - HSFO M1 | 43.88 | 52.64 | 8.76 | [1] Singapore Fuel Oil | Product | 2025/05/27 | 2025/06/03 | Change | | --- | --- | --- | --- | | 380cst M1 | 416.86 | 404.63 | -12.23 | | 180cst M1 | 423.87 | 411.53 | -12.34 | | VLSFO M1 | 481.97 | 475.64 | -6.33 | | Gasoil M1 | 78.88 | 79.52 | 0.64 | | 380cst - Brent M1 | 1.49 | -0.48 | -1.97 | | VLSFO - Gasoil M1 | -101.74 | -112.81 | -11.07 | [1] Singapore Fuel Oil Spot | Product | 2025/05/27 | 2025/06/03 | Change | | --- | --- | --- | --- | | FOB 380cst | 420.21 | 422.45 | 2.24 | | FOB VLSFO | 488.92 | 486.45 | -2.47 | | 380 Basis | 5.50 | 5.50 | 0 | | High - sulfur Domestic - Foreign Spread | 10.1 | 4.9 | -5.2 | | Low - sulfur Domestic - Foreign Spread | 11.9 | 16.7 | 4.8 | [2] Domestic FU | Product | 2025/05/27 | 2025/06/03 | Change | | --- | --- | --- | --- | | FU 01 | 2676 | 2705 | 29 | | FU 05 | 2611 | 2642 | 31 | | FU 09 | 2819 | 2828 | 9 | | FU 01 - 05 | 65 | 63 | -2 | | FU 05 - 09 | -208 | -186 | 22 | | FU 09 - 01 | 143 | 123 | -20 | [2] Domestic LU | Product | 2025/05/27 | 2025/06/03 | Change | | --- | --- | --- | --- | | LU 01 | 3344 | 3333 | -11 | | LU 05 | 3282 | 3286 | 4 | | LU 09 | 3415 | 3425 | 10 | | LU 01 - 05 | 62 | 47 | -15 | | LU 05 - 09 | -133 | -139 | -6 | | LU 09 - 01 | 71 | 92 | 21 | [3]

Report Information - Report Title: Fuel Oil Industry Weekly Report [2] - Report Date: June 2, 2025 [2] - Author: Xu Liang (Z0002220) [3] - Reviewer: Tang Yun (Z0002422) [3] Industry Investment Rating - Not provided in the report Core Viewpoint - Crude oil production increase expectations and macro bearish factors weaken cost support. Coupled with weak demand in the off - season and high inventory pressure, fuel oil maintains a pattern where it is easier to fall than to rise [5] Summary by Content Fundamental Information - Fujeirah fuel oil inventory decreased by 1.395 million barrels (a 12.7% decline) weekly, and the start of power generation demand in the Middle East alleviates regional supply pressure [4] - Middle - Eastern countries such as Egypt and Saudi Arabia have increased high - sulfur fuel oil power generation tenders, supporting the fundamentals of the high - sulfur market [4] - Singapore fuel oil inventory increased by 0.832 million barrels to 22.338 million barrels (a new high this year), and the inflow of European cargoes intensifies supply looseness [4] - During the off - season of marine fuel consumption and with the expectation of refinery restart, the spot price dropped by 85 yuan/ton weekly; OPEC+ production increase expectations suppress crude oil costs [4] Low - Sulfur Fuel Oil Price and Spread Data - **Price Changes**: Singapore low - sulfur fuel oil M + 2 was at $472.35/ton on June 2, 2025, with a daily increase of $6.73 and a weekly decrease of $0.98. Other regions also had corresponding price changes [6] - **Spread Changes**: LU futures M + 3 - Singapore low - sulfur fuel oil M + 2 was at $6.4711/ton on June 2, 2025, with a daily decrease of $19.6327 and a weekly decrease of $6.7902. Other spreads also had different changes [6] High - Sulfur Fuel Oil Price and Spread Data - **Price Changes**: Singapore high - sulfur fuel oil M + 1 was at $407.54/ton on June 2, 2025, with a daily decrease of $3.84 and a weekly decrease of $12.86. Other regions also had price fluctuations [28] - **Spread Changes**: Singapore high - sulfur fuel oil monthly spread was at 7.45 on June 2, 2025, with a daily decrease of 7.23 and a weekly decrease of 10.42. Other spreads also changed accordingly [28] Supply and Demand - Related Data - **Supply**: Data on low - sulfur fuel oil exports from Kuwait, Brazil, and Russia, as well as China's bonded port fuel oil monthly supply are presented [15][17][21] - **Demand**: Data on China's low - sulfur fuel oil port actual consumption, Singapore's marine fuel bunkering volume, and high - sulfur fuel oil sales in Singapore and Fujairah are provided [22][29][40] Inventory - Related Data - Inventory data for Singapore's residue, ARA fuel oil, Fujeirah fuel oil, and fuel oil in Zhoushan Port's bonded warehouse are shown [24][25] - Seasonal data on high - sulfur floating storage inventories in Malaysia and Singapore are also presented [48][49] Other Data - Seasonal data on low - sulfur fuel oil cracking spreads, monthly spreads, and price differences between different regions are provided [7][9][12] - Seasonal data on high - sulfur fuel oil cracking spreads, monthly spreads, and price differences between different regions are also included [32][34][37]

| | | | | 燃料油早报 | | 研究中心能化团队 2025/06/03 | | | --- | --- | --- | --- | --- | --- | --- | --- | | 燃 料 油 | | | | | | | | | 日期 | 鹿特丹3.5% HSF | 鹿特丹0.5% VLS | 鹿特丹HSFO-Br | 鹿特丹10ppm G | 鹿特丹VLSFO-G | LGO-Brent M1 | 鹿特丹VLSFO-H | | | O掉期 M1 | FO掉期 M1 | ent M1 | asoil掉期 M1 | O M1 | | SFO M1 | | 2025/05/26 | 401.31 | 447.03 | -0.94 | 585.92 | -138.89 | 16.20 | 45.72 | | 2025/05/27 | 398.15 | 442.03 | -0.39 | 581.80 | -139.77 | 16.18 | 43.88 | | 2025/05/28 | 410.97 | 449.14 | 0.26 | 592.74 | -143.60 | 16.78 | 38.17 | | ...

| 国 内 F U | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | 日期 | FU 01 | FU 05 | FU 09 | FU 01-05 | FU 05-09 | FU 09-01 | | 2025/05/09 | 2638 | 2608 | 2773 | 30 | -165 | 135 | | 2025/05/12 | 2699 | 2659 | 2832 | 40 | -173 | 133 | | 2025/05/13 | 2709 | 2665 | 2839 | 44 | -174 | 130 | | 2025/05/14 | 2755 | 2697 | 2893 | 58 | -196 | 138 | | 2025/05/15 | 2686 | 2644 | 2818 | 42 | -174 | 132 | | 变化 | -69 | -53 | -75 | -16 | 22 | -6 | 国 内 L U | 日期 | LU 01 | LU 05 | LU 09 | LU 01-05 | LU 05-09 | LU 09-01 ...