1. Report Industry Investment Rating - No relevant information provided 2. Core View of the Report - The European diesel cracking spread is expected to return to fundamental - based pricing, with limited downside potential, and is projected to trade sideways at a high level in December. Europe's long - term structural capacity withdrawal will support the bottom [5][9][11] 3. Summary according to Related Catalogs Price Movement - The monthly average of ICE Gasoil Crack Spread in November was $29.78 per barrel, a 26 - month high, with the highest intraday closing price reaching $35.77 per barrel. After peaking, it gradually pulled back, closing at approximately $25.36 per barrel on December 1st [4] Fundamentals Supply - Europe's refinery autumn maintenance season is in the final stage, and its impact has weakened significantly. New refinery projects in India and Bahrain have started operations, adding supply to the market. Rumors about China's first batch of quotas for 2026 have also affected market expectations [6][9] Demand - As the largest heating oil market in Northwest Europe, France's diesel imports have been sluggish, and the seasonal consumption pattern has not fully started. Currently, European temperatures are below normal, and Germany's fuel tax will increase in January 2026, which may prompt enterprises to replenish heating oil inventories in December, boosting short - term demand. There are still expectations for the peak heating season in December [7][9] Inventory - ARA diesel inventories are still above the 5 - year historical average for the same period but show signs of destocking [8][9] Outlook - The European Gasoil Crack Spread is expected to return to fundamental - based pricing, and it is projected to trade sideways at a high level in December due to Europe's long - term structural capacity withdrawal [11]