Report Summary 1. Report Industry Investment Rating No investment rating is provided in the report. 2. Core Viewpoints - Market sentiment premium has declined, but there is still a supply gap. The market structure of high - and low - sulfur fuel oil will not trend downward until there is a definite signal of easing in US - Iran negotiations [1]. - Although the market has a growing expectation of the easing of the Middle - East situation, the war situation is still unclear, the Strait of Hormuz has not resumed navigation, and the risk has not truly subsided [1]. 3. Summary by Related Content Market Analysis - The night session of the main contract of SHFE fuel oil futures closed down 2%, at 4,313 yuan/ton; the night session of the main contract of INE low - sulfur fuel oil futures closed down 3.02%, at 4,980 yuan/ton [1]. - After Trump's remarks, the market's expectation of the easing of the Middle - East situation increased, and FU and LU entered a state of shock and correction. However, the outcome of the war is still unclear, and the risk has not subsided [1]. - For high - sulfur fuel oil, the supply from the Middle East accounts for a relatively high proportion, and it has a large exposure to geopolitical conflict risks. The increase in exports from Russia and Venezuela can hedge the supply gap to some extent, and the previously accumulated on - land and floating storage inventories can be used as short - term sources of goods for downstream [1]. - For low - sulfur fuel oil, although the direct export from the Middle East accounts for a low proportion, refineries in the Asia - Pacific region have reduced production due to raw material shortages, and the high premium in the diesel market has a boosting effect on the low - sulfur fuel oil market. The strong diesel crack spread may attract more components and indirectly tighten the supply of low - sulfur fuel oil [1]. Strategy - For high - sulfur fuel oil, it is recommended to wait and see due to short - term sharp fluctuations [2]. - For low - sulfur fuel oil, it is recommended to wait and see due to short - term sharp fluctuations [2]. - There are no strategies for cross - variety, cross - period, spot - futures, or options [2].