News Summary Core Viewpoint - The recent trends in fuel oil supply and demand indicate a mixed outlook, with low-sulfur fuel oil supply tightening while high-sulfur fuel oil remains stable, influenced by geopolitical factors and refinery operations [1][2]. Group 1: Supply Dynamics - As of November 4, the Shanghai Futures Exchange reported low-sulfur fuel oil warehouse receipts at 45,730 tons, unchanged from the previous trading day, while fuel oil warehouse receipts stood at 46,460 tons, also unchanged [1]. - In October, there was a notable decrease in high-sulfur fuel oil exports from Russia (-570,000 tons) and Iran (-200,000 tons), while Iraq (+650,000 tons) and Mexico (+370,000 tons) saw increases, indicating a slight contraction in overall export volumes [1]. - The CEO of Saudi Aramco noted that fuel demand in the U.S. and Europe is supporting healthy refining margins [1]. Group 2: Market Insights - According to Everbright Futures, the recent decline in Russian gasoline and diesel exports, along with maintenance at Kuwait's Al-Zour refinery, has led to an increase in the diesel crack spread in Asia, potentially tightening low-sulfur supply [2]. - High-sulfur fuel oil inventories remain relatively ample, with stable inflows from Russia expected to continue into Asia. November's overall supply of fuel oil in Singapore is anticipated to remain sufficient [2]. - Demand for low-sulfur fuel oil in Singapore is lacking momentum for growth, while high-sulfur fuel oil demand remains stable. However, strong refining margins for high-sulfur fuel oil may suppress refinery raw material demand [2]. Group 3: Price Outlook - Southwest Futures indicated that the recovery of fuel oil supply in Singapore is bearish for fuel oil prices, while sanctions on Russia and reduced trade tensions between China and the U.S. could support prices [3]. - The strategy suggests focusing on short-selling opportunities in the main fuel oil contracts [3].