Report Industry Investment Rating - The oil price is expected to be volatile and weak, with a medium - term short - position allocation [3] Core Viewpoints - The US has intensified oil sanctions, adding a Chinese terminal, local refineries, and shadow tankers to the sanctions list, which affects the sensitive oil supply chain. Due to quota issues, local refineries have low willingness to process sensitive oil, but high sensitive oil shipments lead to high floating and shore - tank inventories and restricted circulation of sensitive oil [2] Summary by Related Catalogs Market News and Important Data - The November - delivery light crude oil futures price on the New York Mercantile Exchange fell $1.04 to $61.51 per barrel, a 1.66% decline; the December - delivery Brent crude oil futures price in London fell $1.03 to $65.22 per barrel, a 1.55% decline. The SC crude oil main contract closed down 0.96% at 464 yuan per barrel [1] - As of the week ending October 6, the total refined oil inventory at the Port of Fujairah in the UAE was 16.334 million barrels, an increase of 3.006 million barrels from the previous week. Light distillate inventory increased by 2.179 million barrels to 8.107 million barrels, medium distillate inventory increased by 0.416 million barrels to 2.307 million barrels, and heavy residual fuel oil inventory increased by 0.411 million barrels to 5.92 million barrels [1] - The EIA Short - Term Energy Outlook Report expects the 2025 Brent price to be $68.64 per barrel (previously $67.80), and the 2025 WTI crude oil price to be $65.00 per barrel (previously $64.16) [1] - As of the week ending October 8, Singapore's fuel oil inventory decreased by 892,000 barrels to a two - week low of 23.669 million barrels [1] - Russian Deputy Prime Minister Novak said Russia will gradually increase oil production, is committed to implementing the OPEC+ agreement, and diesel exports do not require quotas [1] Investment Logic - The US intensifying oil sanctions affects the sensitive oil supply chain. Local refineries' low processing willingness due to quotas and high shipments result in high inventories and restricted circulation of sensitive oil [2] Strategy - The oil price is expected to be volatile and weak, with a medium - term short - position allocation [3]