Report Summary 1. Report Industry Investment Rating No investment rating information is provided in the report. 2. Core Viewpoints - International oil prices closed lower, with the International Energy Agency warning of a supply glut next year and ongoing Sino - US trade tensions, causing fuel oil to continue to be under pressure and oscillate at a low level. The spot fundamentals have relatively sufficient supply, and shipping demand is uncertain under the background of the Sino - US trade war, failing to provide upward momentum. - It is expected that FU2601 will operate in the range of 2680 - 2720, and LU2512 will operate in the range of 3150 - 3200 [3]. 3. Summary by Directory 3.1 Daily Tips - The Asian region may maintain sufficient supply in November due to high existing inventories and a continuous and stable inflow of high - sulfur goods from Russia. The recovery of high - sulfur fuel oil refining margins has curbed refinery raw material demand. The premium of Singapore's low - sulfur fuel oil terminal delivery term contracts declined in October due to sufficient inventory and insufficient demand. - The basis of Singapore high - sulfur fuel oil is 24 yuan/ton, and that of low - sulfur fuel oil is 8 yuan/ton, with the spot at par with the futures. - Singapore's fuel oil inventory in the week of October 8 was 20.619 million barrels, a decrease of 1.64 million barrels. - The price is below the 20 - day moving average, and the 20 - day moving average is downward. - High - sulfur main positions are short, with short positions increasing; low - sulfur main positions are long, with long positions increasing [3]. 3.2 Multi - and Short - Term Concerns - **Likely Positive Factors**: None mentioned. - **Likely Negative Factors**: The optimism on the demand side remains to be verified; sanctions against Russia may be intensified; Russia's fuel oil export restrictions may be extended. - **Market Drivers**: Supply is affected by geopolitical risks, and demand is neutral [4]. 3.3 Fundamental Data - **Futures Market**: The previous value of the FU main contract futures price was 2714, and the current value is 2669, a decrease of 45 or 1.66%. The previous value of the LU main contract futures price was 3216, and the current value is 3158, a decrease of 58 or 1.80%. The previous value of the FU basis was - 22, and the current value is 24, an increase of 46 or 206.75%. The previous value of the LU basis was - 8, and the current value is 8, an increase of 16 or 200.51% [5]. - **Spot Market**: The prices of Zhoushan high - sulfur and low - sulfur fuel oils remained unchanged. The price of Singapore high - sulfur fuel oil increased from 363.05 to 367.61 dollars/ton, an increase of 4.56 dollars/ton or 1.26%. The price of Singapore low - sulfur fuel oil decreased from 435.50 to 431.60 dollars/ton, a decrease of 3.90 dollars/ton or 0.90%. The price of Middle - East high - sulfur fuel oil increased from 339.50 to 344.12 dollars/ton, an increase of 4.62 dollars/ton or 1.36%. The price of Singapore diesel decreased from 630.10 to 620.96 dollars/ton, a decrease of 9.13 dollars/ton or 1.45% [6]. 3.4 Inventory Data - Singapore's fuel oil inventory on October 8 was 20.619 million barrels, a decrease of 1.64 million barrels compared to the previous period. The inventory has shown fluctuations in recent months, with an increase in some weeks and a decrease in others [3][8].