Report Summary 1. Report Industry Investment Rating - No information provided 2. Core Viewpoints - This week, the high - sulfur crack spread declined, the 380 - month spread declined, and the basis strengthened. The low - sulfur crack spread weakened in a volatile manner, the near - end month spread weakened slightly, and the basis weakened. Singapore's on - land inventory continued to accumulate, ARA port inventory continued to accumulate, and US residual oil inventory decreased slightly. After the supply recovers, there is room for the crack spread and the inter - month spread to decline. The high - sulfur crack spread has started to loosen, and the overseas market game remains strong. Affected by consumption tax deductions and tariff adjustments in China this year, the refinery feedstock demand for fuel oil has declined significantly. In the bunker fuel sector, the global high - sulfur bunker fuel from January to March increased by 2% year - on - year, Singapore remained basically flat, and the total bunker fuel was weaker year - on - year. Attention should be paid to the impact of tariffs on global trade activities. Recently, Saudi Arabia's net imports have rebounded, Egypt's purchases have continued, and high - sulfur fuel oil is still in the peak season. Attention should be paid to the opportunity of the medium - term decline in the high - sulfur crack spread. With high domestic production scheduling, a high - short strategy for LU at home and abroad is maintained [3][8] 3. Summary by Directory Rotterdam Fuel Oil Data - From June 3, 2025, to June 9, 2025, the price of Rotterdam 3.5% HSF O swap M1 increased by 6.60, Rotterdam 0.5% VLS FO swap M1 increased by 4.06, Rotterdam HSFO - Brent M1 increased by 0.31, Rotterdam 10ppm Gasoil swap M1 increased by 6.05, Rotterdam VLSFO - Gasoil M1 decreased by 1.99, LGO - Brent M1 increased by 0.20, and Rotterdam VLSFO - HSFO M1 decreased by 2.54 [1] Singapore Fuel Oil Data - From June 3, 2025, to June 9, 2025, the price of Singapore 380cst M1 increased by 10.49, Singapore 180cst M1 increased by 11.09, Singapore VLSFO M1 increased by 6.89, Singapore Gasoil M1 increased by 1.85, Singapore 380cst - Brent M1 decreased by 0.11, and Singapore VLSFO - Gasoil M1 decreased by 6.80 [1] Singapore Fuel Oil Spot Data - From June 3, 2025, to June 9, 2025, the FOB price of 380cst increased by 2.79, the FOB price of VLSFO increased by 0.30, the 380 basis remained unchanged, the high - sulfur domestic - foreign price difference decreased by 2.3, and the low - sulfur domestic - foreign price difference decreased by 0.3 [2] Domestic FU Data - From June 3, 2025, to June 9, 2025, the price of FU 01 increased by 20, FU 05 increased by 11, FU 09 increased by 16, FU 01 - 05 declined, FU 05 - 09 decreased by 5, and FU 09 - 01 decreased by 4 [2] Domestic LU Data - From June 3, 2025, to June 9, 2025, the price of LU 01 increased by 26, LU 05 increased by 5, LU 09 decreased by 1, LU 01 - 05 increased by 21, LU 05 - 09 increased by 6, and LU 09 - 01 decreased by 27 [3]

Report Summary 1. Report Industry Investment Rating No clear industry investment rating is provided in the report. 2. Core View - The Asian low - sulfur fuel oil market structure has strengthened slightly due to the expected tight supply in June. The supply of compliant low - sulfur fuel oil is expected to be limited in the next two weeks due to the lack of medium - sulfur blending components. The high - sulfur fuel oil market is supported by the increasing power generation demand as the Middle East and South Asia enter the peak air - conditioning electricity consumption season. - The spot prices of both high - sulfur and low - sulfur fuel oils are at a premium to the futures prices. - The Singapore fuel oil inventory decreased by 610,000 barrels to 21.409 million barrels in the week ending June 4. - The prices of fuel oil are above the 20 - day moving average, and the 20 - day moving average is flat. - Both high - sulfur and low - sulfur fuel oil main contracts have short positions, and the short positions are decreasing. - Overnight, with the improvement of the macro - sentiment, the financial market strengthened. Fuel oil followed the upward trend of crude oil, and the fundamentals are slightly strong. It is expected to perform better than crude oil today. The FU2507 is expected to trade in the range of 2930 - 2990, and the LU2508 is expected to trade in the range of 3530 - 3590 [3]. 3. Summary by Directory 3.1 Daily Prompt - The report provides a comprehensive analysis of the fuel oil market, including fundamentals, basis, inventory, price trends, and main contract positions. It also gives the expected trading ranges for the FU2507 and LU2508 contracts [3]. 3.2 Multi - and Short - term Concerns - **Likely Positives**: OPEC+ has extended additional production cuts (though implementation needs to be tracked), and China has issued import quotas. - **Likely Negatives**: The optimism on the demand side remains to be verified, and there is a possibility of relaxed sanctions on Russia. The market is driven by the co - existence of supply - side production cuts that need to be observed and neutral demand [4]. 3.3 Fundamental Data - **Supply**: The supply of low - sulfur fuel oil is expected to be tight in the short term due to the lack of blending components. The high - sulfur fuel oil market is supported by power generation demand. - **Basis**: The basis of Singapore high - sulfur fuel oil is 261 yuan/ton, and that of low - sulfur fuel oil is 201 yuan/ton, indicating a spot premium over futures. - **Inventory**: The Singapore fuel oil inventory decreased by 610,000 barrels to 21.409 million barrels in the week ending June 4 [3]. 3.4 Spread Data - The report does not provide detailed spread data analysis, but shows a chart of the high - and low - sulfur fuel oil futures spread over a long - term period [14]. 3.5 Inventory Data - Singapore fuel oil inventory data from March 26 to June 4 is provided, showing fluctuations in inventory levels. The inventory decreased by 610,000 barrels in the week ending June 4 [8].

Report Summary 1) Report Industry Investment Rating No information provided. 2) Core Viewpoints - This week, the high - sulfur crack spread declined slightly, the 380 near - end ran strongly, the monthly spread oscillated at a high level, and the basis strengthened again. The low - sulfur crack spread oscillated, the near - end monthly spread oscillated, and the basis weakened [3][4]. - This week, inventories continued to accumulate on land in Singapore, slightly increased at ARA ports, decreased for US residual oil, and significantly decreased at Fujairah. After the low - sulfur valuation was realized recently, there is room for downward correction in the crack spread and the monthly spread after supply recovers. The high - sulfur crack spread is running strongly, with profits higher than the historical average. This year, affected by consumption tax deductions and tariff adjustments in China, the feedstock demand of fuel oil refineries has dropped significantly. In terms of marine fuel, the global high - sulfur marine fuel from January to March increased by 2% year - on - year, basically unchanged in Singapore, and the total marine fuel was weak year - on - year. Pay attention to the impact of tariffs on global trade activities in the future. Recently, the net import of Saudi residual oil has rebounded, and Egypt's purchases continue. The high - sulfur near - end remains strong. Pay attention to the opportunity of the high - sulfur crack spread to decline in the medium and long term [3][4]. 3) Summary by Relevant Catalogs Rotterdam Fuel Oil - From May 28 to June 4, 2025, the price of Rotterdam 3.5% HSF O swap M1 decreased by 6.04, Rotterdam 0.5% VLS FO swap M1 decreased by 7.05, Rotterdam HSFO - Brent M1 increased by 0.19, Rotterdam 10ppm Gasoil swap M1 decreased by 9.43, Rotterdam VLSFO - GO M1 increased by 2.38, LGO - Brent M1 decreased by 0.43, and Rotterdam VLSFO - HSFO M1 decreased by 1.01 [1]. Singapore Fuel Oil - From May 28 to June 4, 2025, the price of Singapore 380cst M1 increased by 6.98, Singapore 180cst M1 increased by 6.83, Singapore VLSFO M1 increased by 7.07, Singapore GO M1 increased by 1.09, Singapore 380cst - Brent M1 increased by 0.26, and Singapore VLSFO - GO M1 decreased by 0.99 [1]. Singapore Fuel Oil Spot - From May 28 to June 4, 2025, the FOB price of 380cst increased by 11.43, the FOB price of VLSFO increased by 7.14, the 380 basis increased by 4.10, the high - sulfur domestic - foreign price difference increased by 0.9, and the low - sulfur domestic - foreign price difference decreased by 1.6 [2]. Domestic FU - From May 28 to June 4, 2025, the price of FU 01 increased by 5, FU 05 increased by 10, FU 09 increased by 13, FU 01 - 05 decreased by 5, FU 05 - 09 decreased by 3, and FU 09 - 01 increased by 8 [2]. Domestic LU - From May 28 to June 4, 2025, the price of LU 01 increased by 48, LU 05 increased by 24, LU 09 increased by 46, LU 01 - 05 increased by 24, LU 05 - 09 decreased by 22, and LU 09 - 01 decreased by 2 [3].

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]

| | | | | 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 | | ...

| 燃料油早报 | | | --- | --- | | | 研究中心能化团队 2025/05/21 | | 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 | | 2025/05/14 | 406.15 | 451.49 | -1.58 | 606.04 | -154.55 | 17.57 | 45.34 | | 2025/05/15 | 399.03 | 442.66 | -0.90 | 598.55 | -155.89 | 18.05 | 43.63 | | 2025/05/16 | 402.97 | 447.36 | -1.01 | 595.17 | -147.81 | 16.77 | 4 ...

| 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 ...

燃 料 油 日期 鹿特丹3.5% HSF O掉期 M1 鹿特丹0.5% VLS FO掉期 M1 鹿特丹HSFO-Br ent M1 鹿特丹10ppm G asoil掉期 M1 鹿特丹VLSFO-G O M1 LGO-Brent M1 鹿特丹VLSFO-H SFO M1 2025/05/06 380.62 426.34 -2.19 571.31 -144.97 16.94 45.72 2025/05/07 376.49 422.72 -1.76 558.93 -136.21 16.36 46.23 2025/05/08 385.77 431.14 -1.51 571.02 -139.88 16.22 45.37 2025/05/09 391.29 432.57 -1.45 579.21 -146.64 16.19 41.28 2025/05/12 402.21 442.91 -1.29 591.43 -148.02 16.88 40.70 变化 10.92 10.34 0.16 12.22 -1.38 0.69 -0.58 新加坡VLSFO M 新加坡380cst-Br 新加坡VLSFO-G | 日期 | | ...

1. Report Industry Investment Rating - Not provided 2. Core Viewpoints of the Report - This week, the 380 cracking continued to strengthen, the 380 near - month spread fluctuated, and the 380 basis weakened. The low - sulfur cracking rebounded, the spread against diesel strengthened, the Singapore low - sulfur monthly spread strengthened, and the basis fluctuated around +2. [3] - On the fundamental side, on - land stocks in Singapore continued to accumulate, ARA stocks increased slightly, and EIA stocks increased. In floating storage, high - sulfur stocks in Singapore increased significantly. [3] - Low - sulfur prices fluctuated. The high - sulfur floating storage in Fujairah decreased slightly, the low - sulfur floating storage decreased, the overall high - sulfur floating storage in the Middle East continued to decline, and the low - sulfur floating storage declined; European floating storage increased, the high - sulfur floating storage in the US fluctuated, the low - sulfur floating storage fluctuated, and the floating storage with unknown sulfur content increased. [9] - Saudi shipments decreased, UAE shipments increased month - on - month, and Russian shipments decreased month - on - month. In 2025, attention should be paid to the impact of sanctions on Iran on global heavy - oil valuations. In Asia, attention should be paid to whether Russian supply will return to the benchmark. The far - month 380 faces downward space. Recently, with the decline of Middle East floating storage and the significant increase of on - land stocks in Singapore, the 380 near - month continues to face pressure. [9] - In the low - sulfur market, the Singapore basis rebounded slightly recently, and the spread against diesel began to strengthen. [9] 3. Summary by Relevant Catalogs Rotterdam Fuel Oil Data - From April 10 - 11, 2025, the price of Rotterdam 3.5% HSF O swap M1 increased from 384.75 to 388.25, a change of 2.16; Rotterdam 0.5% VLS FO swap M1 increased from 421.90 to 423.18, a change of 2.79; Rotterdam HSFO - Brent M1 changed from - 2.00 to - 1.66, a change of - 0.87; Rotterdam 10ppm Gasoil swap M1 decreased from 575.33 to 572.50, a change of - 11.80; Rotterdam VLSFO - Gasoil M1 changed from - 153.43 to - 149.32, a change of - 9.01; LGO - Brent M1 changed from 16.23 to 14.50, a change of - 0.33; Rotterdam VLSFO - HSFO M1 changed from 37.15 to 34.93, a change of - 0.63. [1] - From April 14 - 16, 2025, the price of Rotterdam 3.5% HSF O swap M1 changed from 398.72 to 397.83; Rotterdam 0.5% VLS FO swap M1 changed from 431.42 to 430.85; Rotterdam HSFO - Brent M1 changed from - 1.29 to - 2.30; Rotterdam 10ppm Gasoil swap M1 changed from 586.30 to 595.85; Rotterdam VLSFO - Gasoil M1 changed from - 154.88 to - 165.00; LGO - Brent M1 changed from 16.23 to 16.43; Rotterdam VLSFO - HSFO M1 changed from 32.70 to 33.02. [8] Singapore Fuel Oil Data Swap Data - From April 10 - 16, 2025, the price of Singapore 380cst M1 changed from 397.57 to 413.13, a change of - 4.81; Singapore 180cst M1 changed from 408.79 to 425.63, a change of - 4.31; Singapore VLSFO M1 changed from 460.19 to 462.42, a change of - 5.20; Singapore Gasoil M1 changed from 78.51 to 80.00, a change of - 0.06; Singapore 380cst - Brent M1 changed from - 0.90 to 0.96, a change of - 0.57; Singapore VLSFO - Gasoil M1 changed from - 120.78 to - 131.40, a change of - 6.58. [1] Spot Data - From April 10 - 16, 2025, the FOB price of Singapore 380cst changed from 392.53 to 416.99, a change of - 0.21; FOB VLSFO changed from 466.60 to 470.33, a change of - 1.74; the 380 basis changed from - 3.50 to - 0.55, a change of 0.25; the high - sulfur domestic - foreign spread changed from 10.3 to 7.3, a change of - 0.1; the low - sulfur domestic - foreign spread changed from 4.7 to 4.1, a change of 0.6. [2] Domestic Fuel Oil Data FU Data - From April 10 - 16, 2025, the price of FU 01 changed from 2683 to 2637, a change of - 17; FU 05 changed from 2976 to 3016, a change of - 77; FU 09 changed from 2794 to 2758, a change of - 33; FU 01 - 05 changed from - 293 to - 379, a change of 60; FU 05 - 09 changed from 182 to 258, a change of - 44; FU 09 - 01 changed from 111 to 121, a change of - 16. [2] LU Data - From April 10 - 16, 2025, the price of LU 01 changed from 3338 to 3262, a change of - 57; LU 05 changed from 3409 to 3350, a change of - 99; LU 09 changed from 3362 to 3274, a change of - 63; LU 01 - 05 changed from - 71 to - 88, a change of 42; LU 05 - 09 changed from 47 to 76, a change of - 36; LU 09 - 01 changed from 24 to 12, a change of - 6. [3]

Report Key Points 1. Report Industry Investment Rating - Not provided in the given content. 2. Core View of the Report - This week, the cracking spread of high - sulfur fuel oil in the outer market fluctuated, the 380 - grade monthly spread weakened, the 380 - grade basis fluctuated at a high level, and there was pressure on the inside - outer market of FU. In terms of fundamentals, there was a significant inventory build - up in Singapore, a drawdown in ARA, an inventory build - up in EIA onshore, an increase in floating storage, a significant drawdown in high - sulfur floating storage in the Middle East, a drawdown in both onshore and floating storage in Fujairah, and a drawdown in floating storage in Singapore. Saudi Arabia's shipments rebounded month - on - month, while the UAE's shipments decreased month - on - month. In 2025, attention should be paid to the increase in global heavy - oil valuation due to sanctions on Iran. In the Asian region, attention should be paid to whether Russian supply will return to the benchmark. Recently, the decline in floating storage in the Middle East and the onshore inventory build - up in Singapore have put pressure on the near - term monthly spread of 380 - grade fuel oil. For low - sulfur fuel oil, the situation in Singapore is weak. This week, the basis fluctuated at a low level, and the inside - outer price spread also fluctuated at a low level. Global heavy - oil supply remains tight, and the supply of 380 - grade standard products is still tight. If the window rules remain unchanged, the inside - outer market is expected to remain weak in summer, and the domestic market will fluctuate around the fundamentals of downstream demand. [1] 3. Summary by Relevant Catalogs Rotterdam Market - The prices of Rotterdam 3.5% HSFO swap M1, Rotterdam 0.5% VLSFO swap M1, Rotterdam HSFO - Brent M1, Rotterdam 10ppm Gasoil swap M1, Rotterdam VLSFO - GO M1, LGO - Brent M1, and Rotterdam VLSFO - HSFO M1 changed by - 3.35, 1.41, - 0.23, - 3.47, 4.88, - 0.25, and 4.76 respectively from March 26 to April 1 [1]. Singapore Market - In the Singapore market, the prices of Singapore 380cst M1, Singapore 180cst M1, Singapore VLSFO M1, Singapore GO M1, Singapore 380cst - Brent M1, and Singapore VLSFO - GO M1 changed by 3.09, 2.09, 5.88, 0.64, - 0.08, and 2.95 respectively from March 26 to April 1. For Singapore fuel oil spot, the FOB 380cst, FOB VLSFO, 380 basis, high - sulfur inside - outer spread, and low - sulfur inside - outer spread had corresponding price changes, with the high - sulfur inside - outer spread changing by - 0.9 and the low - sulfur inside - outer spread changing by 1.0 [1]. Domestic Market - In the domestic FU market, the prices of FU 01, FU 05, FU 09, FU 01 - 05, FU 05 - 09, and FU 09 - 01 changed by 71, 102, 89, - 31, 13, and 18 respectively from March 26 to April 1. In the domestic LU market, the prices of LU 01, LU 05, LU 09, LU 01 - 05, LU 05 - 09, and LU 09 - 01 changed by 100, 99, 112, 1, - 13, and 12 respectively from March 26 to April 1 [1].