Report Summary 1. Report Industry Investment Rating - No information provided on the industry investment rating. 2. Core Viewpoints - This week, the high - sulfur cracking spread rebounded, the monthly spread rebounded from a low level, and the basis rebounded. European high - sulfur cracking spread fluctuated, the monthly spread weakened, and the EW continued to strengthen. The 0.5% cracking spread in Singapore weakened, the monthly spread fluctuated at a low level, and the basis fluctuated at a low level. European V low - sulfur cracking spread fluctuated at a low level [3]. - In terms of inventory, Singapore's residual fuel oil inventory decreased, high - sulfur floating storage inventory increased, ARA's residual fuel oil inventory was basically flat, Fujairah's residual fuel oil inventory decreased significantly, high - sulfur floating storage inventory decreased, and EIA's residual fuel oil inventory increased slightly [3]. - This week, the cracking spreads of gasoline and diesel in the external market continued to decline, and the price difference between low - sulfur fuel oil and diesel continued to rebound. After the fire at the Al Zour refinery on October 21, it stopped production, providing support for the external low - sulfur fuel oil market, but the short - term upward space is limited. Global residual fuel oil enters the off - season for inventory accumulation. The external cracking spread should pay attention to crude oil fluctuations and feedstock premium/discount levels. This week, the external market's inventory decreased and the monthly spread strengthened, remaining volatile in the short term. The valuation of low - sulfur fuel oil is low, but there is no driving force [4]. 3. Data Summary Rotterdam Fuel Oil Data - From December 17 to December 23, 2025, the price of Rotterdam 3.5% HSF O swap M1 increased from 325.12 to 335.28, a change of 3.05. The price of Rotterdam 0.5% VLS FO swap M1 increased from 368.94 to 383.22, a change of 4.00 [1]. Singapore Fuel Oil Data - From December 17 to December 23, 2025, the price of Singapore 380cst M1 increased from 337.69 to 348.22, a change of 7.43. The price of Singapore VLSFO M1 increased from 404.54 to 419.72, a change of 8.13 [1]. Singapore Fuel Oil Spot Data - From December 17 to December 23, 2025, the FOB price of 380cst increased from 333.61 to 344.15, a change of 6.58. The FOB price of VLSFO increased from 404.59 to 416.98, a change of 6.25 [2]. Domestic FU Data - From December 17 to December 23, 2025, the price of FU 01 increased from 2384 to 2433, a change of 20. The price of FU 05 increased from 2444 to 2496, a change of 22. The price of FU 09 increased from 2412 to 2463, a change of 23 [2]. Domestic LU Data - From December 17 to December 23, 2025, the price of LU 01 increased from 2864 to 2976, a change of 7. The price of LU 05 increased from 2912 to 2994, a change of 20. The price of LU 09 increased from 2956 to 3026, a change of 16 [3].

Report Summary 1. Industry Investment Rating No industry investment rating is provided in the report. 2. Core Viewpoints - This week, the high - sulfur cracking in Singapore weakened on Friday after fluctuating, with the monthly spread running at a historical low and the basis weakening and then oscillating at a historical low. The HSFO cracking in Europe oscillated at a low level, and the EW weakened on Friday. The 0.5% cracking in Singapore continued to weaken this week, with the monthly spread weakening and the basis oscillating at a low level [3]. - In terms of inventory, Singapore's residue oil had a slight inventory build - up, high - sulfur floating storage had a significant inventory build - up, ARA's residue oil had inventory draw - down, Fujairah's residue oil had inventory build - up, high - sulfur floating storage oscillated at a high level, and EIA's residue oil had a slight inventory draw - down [3]. - With the strengthening expectation of Russia - Ukraine peace talks, the cracking of gasoline and diesel in the external market continued to decline this week, and the price difference between low - sulfur and diesel continued to rebound. After the fire at Al Zour refinery on October 21st and its subsequent shutdown, the RFCC unit of Dangote refinery is expected to enter maintenance in December, and VGO exports are expected to increase. The global heavy oil has entered the off - season with inventory build - up. The external cracking is subject to crude oil fluctuations, and there is no improvement in the spot market. FU01 should be treated bearishly. The low - sulfur valuation is low but lacks a driving force [4]. 3. Data Summaries Rotterdam Fuel Oil Swap Data | Product | 2025/11/25 | 2025/11/26 | 2025/11/27 | 2025/11/28 | 2025/12/01 | Change | | --- | --- | --- | --- | --- | --- | --- | | Rotterdam 3.5% HSF O Swap M1 | 339.09 | 345.00 | 351.22 | 353.76 | 351.92 | -1.84 | | Rotterdam 0.5% VLS FO Swap M1 | 385.63 | 390.40 | 390.78 | 391.86 | 395.42 | 3.56 | | Rotterdam HSFO - Brent M1 | -8.01 | -7.55 | -7.41 | -7.40 | -7.51 | -0.11 | | Rotterdam 10ppm Gasoil Swap M1 | 648.85 | 639.56 | 651.68 | 658.00 | 643.93 | -14.07 | | Rotterdam VLSFO - Gasoil M1 | -263.22 | -249.16 | -260.90 | -266.14 | -248.51 | 17.63 | | LGO - Brent M1 | 25.67 | 24.29 | 25.79 | 26.28 | 25.52 | -0.76 | | Rotterdam VLSFO - HSFO M1 | 46.54 | 45.40 | 39.56 | 38.10 | 43.50 | 5.40 | [1] Singapore Fuel Oil Data | Product | 2025/11/25 | 2025/11/26 | 2025/11/27 | 2025/11/28 | 2025/12/01 | Change | | --- | --- | --- | --- | --- | --- | --- | | Singapore 380cst M1 | 345.55 | 341.18 | 342.10 | 348.03 | 347.90 | -0.13 | | Singapore 180cst M1 | 352.99 | 353.51 | 350.60 | 356.03 | 355.44 | -0.59 | | Singapore VLSFO M1 | 423.05 | 416.41 | 422.25 | 421.50 | 425.66 | 4.16 | | Singapore GO M1 | 86.59 | 84.88 | 84.90 | 86.78 | 85.73 | -1.05 | | Singapore 380cst - Brent M1 | -7.95 | -7.91 | -8.58 | -8.40 | -8.14 | 0.26 | | Singapore VLSFO - Gasoil M1 | -217.72 | -211.70 | -206.01 | -220.67 | -208.74 | 11.93 | [1] Singapore Fuel Oil Spot Data | Product | 2025/11/25 | 2025/11/26 | 2025/11/27 | 2025/11/28 | 2025/12/01 | Change | | --- | --- | --- | --- | --- | --- | --- | | FOB 380cst | 342.03 | 336.87 | 338.12 | 343.20 | 338.62 | -4.58 | | FOB VLSFO | 422.33 | 416.44 | 422.42 | 421.10 | 425.18 | 4.08 | | 380 Basis | -3.25 | -3.45 | -4.68 | -5.37 | -7.00 | -1.63 | | High - sulfur Domestic - Foreign Spread | 5.2 | 3.9 | 6.0 | 3.9 | 6.1 | 2.2 | | Low - sulfur Domestic - Foreign Spread | 4.5 | 5.8 | 2.0 | 3.7 | 1.2 | -2.5 | [2] Domestic FU Data | Product | 2025/11/25 | 2025/11/26 | 2025/11/27 | 2025/11/28 | 2025/12/01 | Change | | --- | --- | --- | --- | --- | --- | --- | | FU 01 | 2491 | 2467 | 2471 | 2501 | 2495 | -6 | | FU 05 | 2538 | 2516 | 2516 | 2554 | 2552 | -2 | | FU 09 | 2516 | 2494 | 2488 | 2525 | 2527 | 2 | | FU 01 - 05 | -47 | -49 | -45 | -53 | -57 | -4 | | FU 05 - 09 | 22 | 22 | 28 | 29 | 25 | -4 | | FU 09 - 01 | 25 | 27 | 17 | 24 | 32 | 8 | [2] Domestic LU Data | Product | 2025/11/25 | 2025/11/26 | 2025/11/27 | 2025/11/28 | 2025/12/01 | Change | | --- | --- | --- | --- | --- | --- | --- | | LU 01 | 3015 | 3023 | 3023 | 3027 | 3049 | 22 | | LU 05 | 3055 | 3023 | 3042 | 3047 | 3068 | 21 | | LU 09 | 3095 | 3073 | 3082 | 3085 | 3095 | 10 | | LU 01 - 05 | -40 | 0 | -19 | -20 | -19 | 1 | | LU 05 - 09 | -40 | -50 | -40 | -38 | -27 | 11 | | LU 09 - 01 | 80 | 50 | 59 | 58 | 46 | -12 | [3]