Report Industry Investment Ratings - Crude oil: Neutral (represented by white stars), indicating a short - term balance in the long/short trend and poor operability on the current market, suggesting a wait - and - see approach [5][6] - Fuel oil: Neutral (represented by white stars), suggesting a short - term balance in the long/short trend and poor operability on the current market, recommending a wait - and - see approach [5][6] - Low - sulfur fuel oil: Neutral (represented by white stars), meaning a short - term balance in the long/short trend and poor operability on the current market, advising a wait - and - see attitude [5][6] - Asphalt: Bearish (represented by three green stars), indicating a clearer downward trend and a relatively appropriate short - selling investment opportunity [5][6] - Liquefied petroleum gas: Neutral (represented by white stars), showing a short - term balance in the long/short trend and poor operability on the current market, suggesting waiting and seeing [5][6] Core Viewpoints - International oil prices declined overnight, and the mid - term bearish impact of supply - demand surplus pressure on oil prices persists. The prices of fuel oil and low - sulfur fuel oil fluctuate following the trend of the crude oil end, with the crack spread between high - and low - sulfur fuel oil expected to widen. The price of asphalt dropped, and the market bearish sentiment deepened. The LPG main contract is expected to fluctuate mainly [2][3][4] Summary by Related Catalogs Crude Oil - Overnight international oil prices fell, with the SC12 contract dropping 0.32% during the day. The U.S. government shutdown is about to break the 2018 - 2019 record, suppressing market risk sentiment. Last week, U.S. API crude oil inventories increased by 6.521 million barrels more than expected, and the mid - term bearish impact of supply - demand surplus pressure on oil prices persists [2] Fuel Oil & Low - Sulfur Fuel Oil - Fuel oil prices fluctuate following the crude oil end. Low - sulfur fuel oil has strengthened relative to high - sulfur fuel oil recently. For low - sulfur fuel oil, the crack spread has increased, but the overall supply is still sufficient, and the upward momentum is expected to be limited. For high - sulfur fuel oil, the market has basically digested the expected reduction in Russian supply, and the mid - term supply tends to be loose. Overall, the crack spread between high - and low - sulfur fuel oil is expected to continue to widen [2] Asphalt - The BU price dropped today, with the main contract falling 1.6%. Construction in the north is gradually coming to a halt, while there is still a rush - to - build demand in the south. The fundamentals show multiple bearish signals, and the market bearish sentiment has deepened, causing the BU price to decline under pressure [3] Liquefied Petroleum Gas - The previous upward trend of the LPG futures market has ended, and today's main contract fluctuated within a narrow range. The weekly LPG commodity volume decreased. The improvement in chemical profit has increased demand, and the demand for combustion has improved due to significant temperature drops in many places. The refinery storage capacity ratio decreased slightly, while the port storage capacity ratio increased. The international oil price shows a weakening upward trend, and the LPG main contract is expected to fluctuate mainly [4]

Report Industry Investment Ratings - Crude oil: ★☆☆, indicating a bearish bias with limited trading opportunities [1] - Fuel oil: ★☆☆, suggesting a bearish outlook with low operability [1] - Low-sulfur fuel oil: ★☆☆, showing a bearish tendency with poor trading feasibility [1] - Asphalt: ☆☆☆, meaning a short-term equilibrium with low operability, advising to wait and see [1] - Liquefied petroleum gas (LPG): ★☆☆, representing a bearish view with limited trading potential [1] Core Viewpoints - The overall view of the energy market is bearish, mainly due to geopolitical risk mitigation and supply-demand imbalances [2][3][5] - The impact of the ceasefire agreement in Gaza on the market needs continuous attention, especially its influence on the Russia-Ukraine situation [2] Summaries by Directory Crude Oil - Overnight international oil prices fell, with the SC11 contract dropping 1.45% intraday [2] - The ceasefire agreement in Gaza eases geopolitical risks in the Middle East [2] - The marginal increase in surplus pressure in Q4 and Q1 next year remains the main trading theme, so a bearish approach is recommended [2] Fuel Oil & Low-Sulfur Fuel Oil - The breakthrough in the Israel-Palestine ceasefire negotiation causes the decline of geopolitical risk premium, leading to the drop of crude oil and fuel oil prices [3] - High-sulfur fuel oil is supported by damaged devices and refinery seasonal maintenance in the short term, but supply pressure may emerge in the medium term [3] - The high-sulfur marine fuel demand may be suppressed if the Red Sea resumes navigation [3] - Low-sulfur fuel oil faces continuous supply pressure and weak demand, with a loose supply-demand pattern [3] Asphalt - The latest inventory shows a slight increase in refinery inventory and a significant decrease in social inventory, with overall commercial inventory lower than before the holiday [4] - A refinery postponed its maintenance and started it from mid-October to mid-November [4] - The asphalt market maintains a tight supply-demand balance and is under pressure due to the weakening cost end [4] Liquefied Petroleum Gas (LPG) - The future production increase of OPEC+ intensifies the supply pressure of overseas associated gas [5] - The CP price cut in Saudi Arabia in October exceeds market expectations, leading to a decline in import costs [5] - The market sentiment is cautious, and downstream enterprises mainly purchase for rigid demand after the holiday [5] - LPG is under short-term pressure, and the improvement of combustion demand after the temperature drops needs attention [5]