Group 1: Oil Market Overview - Since August, crude oil prices have shown a significant downward trend, leading to a decline in domestic high-sulfur and low-sulfur fuel oil prices, with notable drops observed [1] - The crack spread of high-sulfur and low-sulfur fuel oil relative to Brent crude oil has rebounded to varying degrees [1] - The risk of a rapid decline in oil prices has eased, partly due to the upcoming meeting between the US and Russian leaders, which may alleviate market concerns about extreme sanctions on Russia tightening supply [1][2] Group 2: Supply and Demand Dynamics - In July, fuel oil arrivals reached a four-month high, with Singapore's net imports rising by 38% in the week ending August 6 [2] - The demand for high-sulfur fuel oil has weakened significantly in the Middle East, with a decrease in Fujairah's marine fuel bunkering volume [2] - Low-sulfur fuel oil production remains low in the domestic market, with a shift of 200,000 tons of low-sulfur fuel oil export quotas to refined oil quotas, leading to reduced production enthusiasm among major domestic units [2][3] Group 3: Price Trends and Future Outlook - The short-term supply of high-sulfur fuel oil is supported by temporary operational issues at Mexican refineries, but this does not affect the long-term trend [1] - The overall fundamentals for both high-sulfur and low-sulfur fuel oils are weak, with high-sulfur fuel oil facing greater long-term pressure compared to low-sulfur fuel oil [4] - The price spread between low-sulfur and high-sulfur fuel oils is expected to have further upward potential, with both types likely to maintain a volatile trend in the short to medium term [4]