Report Industry Investment Ratings - Crude oil: ★☆☆, indicating a bullish bias but limited operability on the trading floor [1] - Fuel oil: ★☆☆, with a bullish bias and limited operability [1] - Low-sulfur fuel oil: ★☆☆, showing a bullish tendency but poor trading floor operability [1] - Asphalt: ★☆☆, suggesting a bullish inclination but weak trading floor operability [1] - Liquefied petroleum gas: ☆☆☆, meaning the short-term long/short trend is in a relatively balanced state with poor trading floor operability, advisable to wait and see [1] Core Views - Geopolitical risks in the short term support oil prices, and investors can focus on the hedging value of out-of-the-money call options for crude oil [2] - The fundamentals of the high and low-sulfur fuel oil markets are weak, and the crack spreads of FU and LU are both weak [2] - The asphalt supply increase space is viewed neutrally, demand is weak but has repair expectations, and the low inventory supports prices, with the upward space limited [3] - The supply of LPG is relatively loose, the domestic market is under pressure, and the overall price runs at a low level [4] Summary by Related Catalogs Crude Oil - Overnight international oil prices continued to rise, with Brent's September contract up 0.98% [2] - Last week, US EIA crude oil inventories increased by 769,800 barrels more than expected, but the market focus is on the recently heated up risk of sanctioned oil [2] - Geopolitical risks in the short term support oil prices, and investors can pay attention to the hedging value of out-of-the-money call options for crude oil [2] Fuel Oil & Low-Sulfur Fuel Oil - Crude oil continued to rise today, but the futures of the fuel oil system weakened after the midday break, and the cracks of FU and LU further declined [2] - The arrival volume in the Singapore market increased significantly in July compared with the previous month, and the bunker fueling volume in Fujairah has been weakening month-on-month since June [2] - The fundamentals of the high and low-sulfur fuel oil markets are weak, and the crack spreads of FU and LU are both weak [2] Asphalt - Crude oil continued to rise today, and among the downstream oil product futures, only asphalt rose slightly, while other varieties closed down [3] - The planned production volume in China in August decreased compared with July, and the demand recovery in the South was delayed due to typhoon and rainfall, while the rigid demand in the North was also dull [3] - The supply increase space of asphalt is currently viewed neutrally, demand is weak but has repair expectations, and the low inventory supports prices, with the upward space limited [3] LPG - The Middle East CP has been significantly reduced, increasing the pressure of oversupply on the overseas market [4] - After the decline in import costs, the chemical profit margin is generally improving, and there is still room for the PDH operating rate to rise [4] - The supply in the domestic market is relatively loose, and the overall price runs at a low level [4]