Group 1: Market Analysis - The main contract of Shanghai Futures Exchange fuel oil futures closed up 0.37% at 3,012 yuan/ton, while the main contract of INE low-sulfur fuel oil futures closed down 1.03% at 3,563 yuan/ton [1] - After the first round of Sino-US trade negotiations and the warming of macro sentiment, crude oil prices have shown a volatile and upward trend recently, boosting the overall energy sector. However, the medium-term expectation of oversupply in the crude oil market has not reversed, and resistance may start to appear after continuous rebounds [1] Group 2: Fundamental Analysis of Fuel Oil - The reduction of tariffs is beneficial to trade and shipping demand, and there is additional inventory replenishment demand during the 90-day suspension period, which is expected to drive the improvement of marine fuel oil consumption. Low-sulfur fuel oil, with more concentrated downstream demand in the marine fuel segment, may be more sensitive [2] - After the entry into force of the Mediterranean ECA in May, although the demand for low-sulfur fuel oil was partially replaced, refineries also reduced the supply of low-sulfur fuel oil through product adjustment. The European market performed stronger than expected, and the tightening of arbitrage cargo volume also supported the Asian market. However, in the medium term, the low-sulfur fuel oil market still faces the contradiction of demand share replacement and excess capacity [2] - As summer approaches, the demand for power plants in the Middle East and other regions will gradually increase. Saudi Arabia, the largest consumer, has shown an increasing trend in fuel oil procurement. According to shipping schedule data, Saudi Arabia's high-sulfur fuel oil imports in May are expected to reach 960,000 tons, a month-on-month increase of 250,000 tons. However, OPEC began to accelerate production increase in May, and power plants can use more domestic raw materials (crude oil, fuel oil, etc.), so it is not advisable to have too high expectations for the peak-season demand increase in the power generation segment [2] Group 3: Strategy - High-sulfur fuel oil: Short-term volatile and upward, medium-term pressure still exists [3] - Low-sulfur fuel oil: Short-term volatile and upward, medium-term pressure still exists [3] - Cross-variety: No strategy [3] - Cross-period: Pay attention to the opportunity of going long the spread of FU2507 - 2509 at low prices (positive spread) [3] - Spot-futures: No strategy [3] - Options: No strategy [3]

Report Summary 1. Report Industry Investment Rating No relevant content provided. 2. Core View of the Report - The main contract of Shanghai Futures Exchange fuel oil futures closed up 1.12% at 3,057 yuan/ton, and the main contract of INE low-sulfur fuel oil futures closed up 3.08% at 3,647 yuan/ton [1]. - After the first round of Sino-US trade negotiations and the improvement of macro sentiment, crude oil prices have shown a volatile and strong trend recently, boosting the overall energy sector. However, the medium-term oversupply expectation in the crude oil market has not reversed, and resistance may begin to appear after continuous rebounds [1]. - For fuel oil fundamentals, tariff cuts are beneficial to trade and shipping demand, and there is additional restocking demand within the 90-day suspension period, which is expected to drive the improvement of marine fuel oil consumption. Low-sulfur fuel oil demand is more concentrated in the marine fuel end and may be more sensitive. After the Mediterranean ECA came into effect in May, although the demand for low-sulfur fuel oil was partially replaced, refineries also reduced the supply of low-sulfur fuel oil through product adjustment. The European market performed stronger than expected, and the tightening of arbitrage cargo volume also supported the Asian market. For high-sulfur fuel oil, as summer approaches, the demand of power plants in the Middle East and other regions enters a seasonal growth stage. According to Platts data, the fuel oil inventory in Fujairah recorded 9.339 million barrels this week, a month-on-month decrease of 10.73%, which may be due to the increased procurement of nearby power plants [1]. - High-sulfur fuel oil: short-term volatile and strong, medium-term pressure still exists; Low-sulfur fuel oil: short-term volatile and strong, medium-term pressure still exists; Cross-variety: no strategy; Cross-period: pay attention to the opportunity of going long the spread of FU2507 - 2509 at low prices (positive spread); Spot-futures: no strategy; Options: no strategy [2]. 3. Summary by Relevant Catalogs Market Analysis - The main contract of Shanghai Futures Exchange fuel oil futures closed up 1.12% at 3,057 yuan/ton, and the main contract of INE low-sulfur fuel oil futures closed up 3.08% at 3,647 yuan/ton [1]. - Crude oil prices are volatile and strong recently, but the medium-term oversupply expectation has not reversed [1]. - Tariff cuts are beneficial to fuel oil consumption, and low-sulfur fuel oil may be more sensitive. The European market for low-sulfur fuel oil is stronger than expected, and the Asian market is supported. High-sulfur fuel oil demand in the Middle East enters a seasonal growth stage, and Fujairah fuel oil inventory has decreased [1]. Strategy - High-sulfur fuel oil: short-term volatile and strong, medium-term pressure still exists [2]. - Low-sulfur fuel oil: short-term volatile and strong, medium-term pressure still exists [2]. - Cross-variety: no strategy [2]. - Cross-period: pay attention to the opportunity of going long the spread of FU2507 - 2509 at low prices (positive spread) [2]. - Spot-futures: no strategy [2]. - Options: no strategy [2]. Charts - Multiple charts show the prices, spreads, closing prices, and trading volumes of Singapore high-sulfur and low-sulfur fuel oil, as well as fuel oil FU and low-sulfur fuel oil LU futures [3].