Report Summary 1. Report Industry Investment Rating - The oil price is expected to be weakly volatile in the short - term and a short - position allocation is recommended in the medium - term [3] 2. Core Viewpoints - After Trump's call with Putin, a meeting in Budapest is planned, which eases the current situation and the Russia - Ukraine situation is not expected to escalate before the meeting. The EU has issued implementation guidelines for refinery loophole sanctions, which will take effect on January 21, 2026. The market's initial reaction is bearish, and the implementation of the European refinery loophole policy will further reduce the market's ability or willingness to absorb Russian oil [2] 3. Summary by Related Catalogs Market News and Important Data - The price of light crude oil futures for November delivery on the New York Mercantile Exchange fell 81 cents to $57.46 per barrel, a decline of 1.39%. The price of Brent crude oil futures for December delivery fell 85 cents to $61.06 per barrel, a decline of 1.37%. The SC crude oil main contract closed down 1.83% at 435 yuan per barrel [1] - As of the week ending October 11, Japan's commercial crude oil inventory decreased by 1,294 thousand liters to 10,287,981 thousand liters. Japan's gasoline inventory increased by 19,554 thousand liters to 1,563,638 thousand liters, and its kerosene inventory increased by 45,911 thousand liters to 2,813,243 thousand liters. The average refinery operating rate was 85.9%, down from 86.3% the previous week [1] - The US Treasury Secretary expects Japan to stop importing energy from Russia, but Japan, which gets about 8% of its LNG imports from Russia, says it won't stop for energy - security reasons. Japan is the only G7 member not to stop or pledge to end Russian gas imports [1] - Brazil's vice - president said Petrobras will sign a new oil contract with India today [1] - Russia's deputy prime minister said Russian gas accounts for about 19% of Europe's gas imports, and Russia is ready to talk about gas supply to Europe and develop Syria's oil reserves [1] Investment Logic - The planned meeting between Trump and Putin eases the situation, and the Russia - Ukraine situation is not expected to escalate before the meeting. The EU's refinery loophole sanctions will take effect in 2026. The market's initial reaction is bearish, and the policy will reduce the market's ability or willingness to absorb Russian oil [2] Strategy - The oil price is expected to be weakly volatile in the short - term and a short - position allocation is recommended in the medium - term [3]