Report Summary 1) Report Industry Investment Rating No relevant content provided. 2) Core Viewpoints - This week, the high - sulfur crack spread fluctuated and declined, the near - month spread decreased, and the EW continued to weaken. The 380 8 - 9 month spread weakened to $1.75, the basis weakened and then fluctuated, the FU09 internal - external spread rebounded slightly, and the domestic delivery inventory was abundant, maintaining a loose pattern. [4] - The Singapore 0.5 crack spread declined slightly, the month spread weakened, and the 8 - 9 month spread fluctuated around $4.5. The LU internal - external spread weakened slightly and then fluctuated, with the 09 around $16. [4] - This week, Singapore's on - land inventory increased significantly. Under delivery pressure, the near - month contract was under pressure, and Saudi Arabia's shipments increased month - on - month. Recently, fuel oil exports from Iran and Iraq remained at a high level, Egypt's net imports reached a new high. Although the high - sulfur supply - demand is in the peak season, the East - West and internal - external spreads have dropped rapidly. The external low - sulfur valuation is high, and the LU internal - external spread is at a high level. Attention should be paid to domestic production. [5] - The Singapore Hi - 5 spread reached a new high this year, both 380cst and VLSFO weakened. The domestic FU internal - external spread rebounded slightly, and the LU valuation is high. The short - term valuation regression opportunity of FU - LU can be considered, with the risk of continuous weakening of the external 380cst. [5] 3) Summary by Related Catalogs Rotterdam Fuel Oil Swap Data - From July 10 to July 16, 2025, the price of Rotterdam 3.5% HSFO swap M1 changed by -$0.32, Rotterdam 0.5% VLSFO swap M1 changed by -$1.21, Rotterdam HSFO - Brent M1 changed by $0.52, Rotterdam 10ppm Gasoil swap M1 changed by -$12.35, Rotterdam VLSFO - GO M1 changed by $11.14, LGO - Brent M1 changed by -$1.45, and Rotterdam VLSFO - HSFO M1 changed by -$0.89. [2] Singapore Fuel Oil Swap Data - From July 10 to July 16, 2025, the price of Singapore 380cst M1 changed by $1.24, Singapore 180cst M1 changed by $2.67, Singapore VLSFO M1 changed by -$1.74, Singapore GO M1 changed by $0.31, Singapore 380cst - Brent M1 changed by $0.69, and Singapore VLSFO - GO M1 changed by -$4.04. [2] Singapore Fuel Oil Spot Data - From July 10 to July 16, 2025, the FOB price of 380cst changed by $4.91, FOB VLSFO changed by -$5.18, the 380 basis changed by $1.55, the high - sulfur internal - external spread changed by $1.2, and the low - sulfur internal - external spread changed by -$2.6. [3] Domestic FU Data - From July 10 to July 16, 2025, FU 01 changed by 26, FU 05 changed by 16, FU 09 changed by 40, FU 01 - 05 changed by 10, FU 05 - 09 changed by - 24, and FU 09 - 01 changed by 14. [3] Domestic LU Data - From July 10 to July 16, 2025, LU 01 changed by 17, LU 05 changed by 16, LU 09 changed by - 9, LU 01 - 05 changed by 1, LU 05 - 09 changed by 25, and LU 09 - 01 changed by - 26. [4]

Report Summary 1. Report Industry Investment Rating No information provided. 2. Core Viewpoints - This week, the high - sulfur crack spread fluctuated and declined, the near - month spread decreased, and the EW continued to weaken. The 380 8 - 9 month spread weakened to $1.75, the basis weakened and then fluctuated, the FU09 internal - external spread rebounded slightly, and the domestic delivery inventory was abundant, maintaining a loose pattern. [4] - The Singapore 0.5 crack spread declined slightly, the month spread weakened, and it fluctuated around $4.5 for the 8 - 9 month spread. The LU internal - external spread weakened slightly and then fluctuated, with the 09 around $16. [4][5] - This week, Singapore's on - land inventory increased significantly, the near - month contract was under pressure due to delivery, and Saudi Arabia's shipments increased month - on - month. Recently, fuel oil exports from Iran and Iraq remained at a high level, Egypt's net imports reached a new high, and the high - sulfur supply - demand is still in the peak season, but the East - West and internal - external spreads have dropped rapidly. The external low - sulfur valuation is high, and the LU internal - external spread is running at a high level. Pay attention to domestic production. [5] - The Singapore Hi - 5 spread reached a new high this year, both 380cst and VLSFO weakened. The domestic FU internal - external spread rebounded slightly, the LU valuation is high, and the short - term valuation regression opportunity of FU - LU can be considered. The risk lies in the continuous weakening of the external 380cst. [5] 3. Summary by Relevant Tables Rotterdam Fuel Oil Swap Prices - The prices of Rotterdam 3.5% HSF O swap M1, 0.5% VLSFO swap M1, etc. showed different changes from July 8 to July 14, 2025. For example, the Rotterdam 3.5% HSF O swap M1 decreased by $10.28. [2] Singapore Fuel Oil Swap Prices - The prices of Singapore 380cst M1, 180cst M1, VLSFO M1, etc. also changed during the same period. For instance, the Singapore 380cst M1 decreased by $10.33 from July 8 - 14. [2] Singapore Fuel Oil Spot Prices - From July 8 to July 14, 2025, the FOB 380cst price decreased by $1.83, while the FOB VLSFO price increased by $9.94. The 380 basis weakened, the high - sulfur internal - external spread increased by $1.7, and the low - sulfur internal - external spread increased by $0.1. [3] Domestic FU Futures Prices - The prices of FU 01, FU 05, and FU 09 contracts changed from July 8 to July 14, 2025. For example, FU 01 increased by 28 points, and the spreads between different contracts also changed. [3] Domestic LU Futures Prices - The prices of LU 01, LU 05, and LU 09 contracts changed during the same period. LU 01 increased by 63 points, and the spreads between different contracts also had corresponding changes. [4]

Report Industry Investment Rating - Not mentioned in the provided content Core Viewpoints - This week, the high-sulfur cracking spread fluctuated and declined, the near-month calendar spread decreased, and the EW continued to weaken. The 380 8-9 calendar spread weakened to $1.75, the basis weakened and then fluctuated, the FU09 internal and external spread rebounded slightly, and the domestic delivery inventory was abundant, maintaining a loose pattern. The Singapore 0.5 cracking spread declined slightly, the calendar spread weakened, and the 8-9 spread fluctuated around $4.5. The LU internal and external spread weakened slightly and then fluctuated, with the 09 spread fluctuating around $16. [5][6] - This week, Singapore's onshore inventory increased significantly. Under the pressure of delivery at the window, the near-month contract was under pressure, and Saudi Arabia's shipments increased month-on-month. Recently, fuel oil exports from Iran and Iraq remained at a high level, Egypt's net imports reached a new high, and the high-sulfur supply and demand was still in the peak season. However, the East-West and internal-external spreads have dropped rapidly. The external low-sulfur valuation is relatively high, and the LU internal and external spread is running at a high level. Attention should be paid to the domestic production situation. [6] - The Singapore Hi-5 spread reached a new high this year, both 380cst and VLSFO weakened. The domestic FU internal and external spread rebounded slightly, and the LU valuation is relatively high. Attention can be paid to the short-term valuation regression opportunity of FU-LU, with the risk being the continuous weakening of the external 380cst. [6] Summary by Related Catalogs Rotterdam Fuel Oil Swap Data - From July 7th to July 11th, 2025, the prices of Rotterdam 3.5% HSF Swap M1 increased by $4.12, Rotterdam 0.5% VLSFO Swap M1 increased by $7.99, Rotterdam HSFO-Brent M1 decreased by $0.81, Rotterdam 10ppm Gasoil Swap M1 increased by $19.70, Rotterdam VLSFO-Gas M1 decreased by $11.71, LGO-Brent M1 increased by $0.83, and Rotterdam VLSFO-HSFO M1 increased by $3.87. [3] Singapore Fuel Oil Swap Data - From July 7th to July 11th, 2025, the prices of Singapore 380cst M1 decreased by $13.94, Singapore 180cst M1 decreased by $12.21, Singapore VLSFO M1 decreased by $7.18, Singapore Gasoil M1 decreased by $0.99, Singapore 380cst-Brent M1 decreased by $1.19, and Singapore VLSFO-Gas M1 increased by $0.14. [3] Singapore Fuel Oil Spot Data - From July 7th to July 11th, 2025, the FOB 380cst price decreased by $14.12, the FOB VLSFO price decreased by $7.34, the 380 basis decreased by $0.65, the high-sulfur internal-external spread increased by $2.5, and the low-sulfur internal-external spread decreased by $1.0. [4] Domestic FU Data - From July 7th to July 11th, 2025, the prices of FU 01 decreased by 55, FU 05 decreased by 45, FU 09 decreased by 61, FU 01 - 05 decreased by 10, FU 05 - 09 increased by 16, and FU 09 - 01 decreased by 6. [4] Domestic LU Data - From July 7th to July 11th, 2025, the prices of LU 01 decreased by 47, LU 05 decreased by 40, LU 09 decreased by 47, LU 01 - 05 decreased by 7, LU 05 - 09 increased by 7, and LU 09 - 01 remained unchanged. [5]

Report Summary 1. Report Industry Investment Rating - No investment rating information is provided in the report. 2. Core Viewpoints - This week, the high - sulfur crack spread fluctuated and declined, the near - month spread decreased, and the EW weakened rapidly. The 380 8 - 9 month spread dropped to $4.25, the basis oscillated at a low level, the FU07 internal - external spread oscillated at - $5, and the 09 oscillated at + $10. There was a large amount of near - month delivery cargo, maintaining a loose pattern [4]. - The low - sulfur crack spread rebounded, the month spread dropped to around $5, the basis weakened slightly and oscillated at $6. The LU internal - external spread remained strong, with the 09 oscillating around $17 [7]. - This week, Singapore's on - shore inventory increased, floating storage oscillated at a high level, low - sulfur floating storage decreased slightly, ARA's on - shore inventory increased slightly but was still at the lowest level in the same period of history, floating storage inventory oscillated, and low - sulfur floating storage increased. Fujairah's on - shore inventory increased significantly, and floating storage decreased slightly [7]. - This week, geopolitical risks were resolved. Recently, fuel oil exports from Iran and Iraq remained at a high level, Egypt's net imports reached a new high, and the high - sulfur fundamentals were in an oscillating pattern. Currently, high - sulfur is in the peak power - generation season, the near - month internal - external spread of FU is under pressure, the valuation is low, and the game continues. In the future, pay attention to the shipping situation in the Middle East, while the LU internal - external spread is running at a high level, and pay attention to the domestic production situation [7]. 3. Summary by Related Catalogs Rotterdam Fuel Oil Data - From June 26 to July 2, the price of Rotterdam 3.5% HSF O swap M1 changed by $11.97, Rotterdam 0.5% VLS FO swap M1 changed by $2.45, Rotterdam HSFO - Brent M1 changed by $0.07, Rotterdam 10ppm Gasoil swap M1 changed by $19.63, Rotterdam VLSFO - Gasoil M1 changed by - $17.18, LGO - Brent M1 remained unchanged, and Rotterdam VLSFO - HSFO M1 changed by - $9.52 [2]. Singapore Fuel Oil Data - **Swap Data**: From June 26 to July 2, the price of Singapore 380cst M1 changed by $10.35, Singapore 180cst M1 changed by $9.17, Singapore VLSFO M1 changed by $9.25, Singapore Gasoil M1 changed by $3.21, Singapore 380cst - Brent M1 changed by - $0.03, and Singapore VLSFO - Gasoil M1 changed by - $14.50 [2][6]. - **Spot Data**: From June 26 to July 2, the FOB 380cst price changed by - $0.39, FOB VLSFO changed by $2.85, the 380 basis changed by - $3.55, the high - sulfur internal - external spread changed by - $0.6, and the low - sulfur internal - external spread remained unchanged [3]. Domestic Fuel Oil Data - **FU Data**: From June 26 to July 2, FU 01 changed by - 6, FU 05 changed by - 8, FU 09 changed by - 19, FU 01 - 05 changed by 2, FU 05 - 09 changed by 11, and FU 09 - 01 changed by - 13 [3]. - **LU Data**: From June 26 to July 2, LU 01 changed by - 7, LU 05 changed by - 3, LU 09 changed by 6, LU 01 - 05 changed by - 4, LU 05 - 09 changed by - 9, and LU 09 - 01 changed by 13 [4].

Report Overview - The report is a fuel oil morning report released by the Energy and Chemicals Team of the Research Center on July 2, 2025 [1][2] Market Data Rotterdam Market - From June 25 to July 1, 2025, the price of Rotterdam 3.5% HSF O swap M1 decreased from 414.85 to 405.07, a change of -0.79; Rotterdam 0.5% VLS FO swap M1 decreased from 468.83 to 460.85, a change of -12.96 [3] Singapore Market - In the Singapore market, from June 25 to July 1, 2025, the price of Singapore 380cst M1 decreased from 420.87 to 413.43, a change of -4.53; Singapore 180cst M1 decreased from 428.68 to 421.09, a change of -4.65 [3][12] Domestic Market - For domestic FU, from June 25 to July 1, 2025, FU 01 increased by 5, FU 05 increased by 8, and FU 09 decreased by 11 [4] - For domestic LU, from June 25 to July 1, 2025, LU 01 decreased by -5, LU 05 decreased by -11, and LU 09 increased by 9 [5] Core Views - This week, the high - sulfur crack spread fluctuated and declined, the near - month spread decreased, and EW weakened rapidly. The 380 8 - 9 month spread dropped to $4.25, the basis fluctuated at a low level, and the FU07 internal - external spread fluctuated at -$5, while the 09 spread fluctuated at +$10. There was a large amount of near - month delivery goods, maintaining a loose pattern [5] - The Singapore 0.5 crack spread rebounded, the month spread dropped to around $5, the basis weakened slightly, and fluctuated at $6. The LU internal - external spread remained strong, with the 09 spread fluctuating around $17 [5][6] - This week, Singapore's on - shore inventory increased, floating storage fluctuated at a high level, low - sulfur floating storage decreased slightly, ARA's on - shore inventory increased slightly, but the inventory was still at the lowest level in the same period of history, floating storage inventory fluctuated, and low - sulfur floating storage increased. Fujairah's on - shore inventory increased significantly, and floating storage decreased slightly [6] - This week, geopolitical risks were resolved. Recently, fuel oil exports from Iran and Iraq remained at a high level, Egypt's net imports reached a new high, and the high - sulfur fundamentals were in a fluctuating pattern. Recently, high - sulfur is still in the peak power - generation season, the near - month FU internal - external spread is under pressure, the valuation is low, and the game continues. In the future, pay attention to the shipping situation in the Middle East. The LU internal - external spread is running at a high level, and pay attention to the domestic production situation [6]

Report Summary 1. Report Industry Investment Rating - Not provided in the content 2. Core Viewpoints - This week, the high - sulfur cracking spread fluctuated and declined, the near - month spread decreased, and the EW weakened rapidly. The 380 8 - 9 month spread dropped to $4.25, the basis fluctuated at a low level, the FU07 internal - external spread oscillated around - $5, and the 09 spread oscillated around + $10. With a large amount of near - month delivery goods, the market maintained a loose pattern [5]. - The low - sulfur cracking spread rebounded, the month spread dropped to around $5, the basis weakened slightly and oscillated at $6. The LU internal - external spread remained strong, with the 09 spread oscillating around $17 [7]. - This week, Singapore's on - shore inventory increased, floating storage oscillated at a high level, low - sulfur floating storage decreased slightly. ARA's on - shore inventory increased slightly, but the inventory was still at the lowest level in the same period of history, floating storage inventory oscillated, and low - sulfur floating storage increased. Fujairah's on - shore inventory increased significantly, and floating storage decreased slightly [7]. - This week, geopolitical risks were resolved. Recently, fuel oil exports from Iran and Iraq remained at a high level, and Egypt's net imports reached a new high. The high - sulfur fundamentals were in an oscillating pattern. Currently, high - sulfur is in the peak power - generation season, the near - month FU internal - external spread is under pressure, the valuation is low, and the game continues. In the future, pay attention to the shipping situation in the Middle East. The LU internal - external spread is running at a high level, and pay attention to the domestic production situation [7]. 3. Summary by Relevant Data Rotterdam Fuel Oil Swap Data | Product | 2025/06/24 | 2025/06/30 | Change | | --- | --- | --- | --- | | Rotterdam 3.5% HSF O Swap M1 | 413.51 | 405.86 | - 6.13 | | Rotterdam 0.5% VLS FO Swap M1 | 466.22 | 473.81 | - 0.73 | | Rotterdam HSFO - Brent M1 | - 1.97 | - 2.53 | - 0.27 | | Rotterdam 10ppm Gasoil Swap M1 | 642.12 | 645.87 | 1.65 | | Rotterdam VLSFO - Gasoil M1 | - 175.90 | - 172.06 | - 2.38 | | LGO - Brent M1 | 21.22 | 21.11 | 0.36 | | Rotterdam VLSFO - HSFO M1 | 52.71 | 67.95 | 5.40 | [3] Singapore Fuel Oil Swap Data | Product | 2025/06/24 | 2025/06/30 | Change | | --- | --- | --- | --- | | Singapore 380cst M1 | 427.90 | 417.96 | 2.05 | | Singapore 180cst M1 | 436.97 | 425.74 | 2.21 | | Singapore VLSFO M1 | 501.16 | 500.47 | 1.98 | | Singapore Gasoil M1 | 85.76 | 86.17 | - 0.80 | | Singapore 380cst - Brent M1 | - 0.54 | - 1.21 | 0.44 | | Singapore VLSFO - Gasoil M1 | - 133.46 | - 137.19 | 7.90 | [3] Singapore Fuel Oil Spot Data | Product | 2025/06/24 | 2025/06/30 | Change | | --- | --- | --- | --- | | FOB 380cst | 431.62 | 418.52 | 1.75 | | FOB VLSFO | 508.57 | 505.08 | 1.06 | | 380 Basis | 2.75 | 0.85 | - 0.15 | | High - sulfur Internal - External Spread | 9.8 | 9.6 | - 1.6 | | Low - sulfur Internal - External Spread | 21.1 | 14.6 | - 2.4 | [4] Domestic FU Data | Product | 2025/06/24 | 2025/06/30 | Change | | --- | --- | --- | --- | | FU 01 | 2895 | 2854 | - 10 | | FU 05 | 2850 | 2801 | - 10 | | FU 09 | 3065 | 2990 | - 12 | | FU 01 - 05 | 45 | 53 | 0 | | FU 05 - 09 | - 215 | - 189 | 2 | | FU 09 - 01 | 170 | 136 | - 2 | [4] Domestic LU Data | Product | 2025/06/24 | 2025/06/30 | Change | | --- | --- | --- | --- | | LU 01 | 3500 | 3507 | - 21 | | LU 05 | 3421 | 3444 | 10 | | LU 09 | 3629 | 3581 | - 19 | | LU 01 - 05 | 79 | 63 | - 31 | | LU 05 - 09 | - 208 | - 137 | 29 | | LU 09 - 01 | 129 | 74 | 2 | [5]

| 『安期货 | | --- | | NGAN FUTURES | | 燃料油早报 | | | --- | --- | | | 研究中心能化团队 2025/06/16 | | 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 | | 2025/06/09 | 402.51 | 452.99 | -2.76 | 609.35 | -156.36 | 16.75 | 50.48 | | 2025/06/10 | 407.23 | 457.96 | -2.96 | 616.60 | -158.64 | 17.90 | 50.73 | | 2025/06/11 | 409.51 | 461.45 | -2 ...

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].