Report Summary 1. Investment Rating No specific investment rating for the industry is provided in the report. 2. Core View The Brent Dubai EFS, an indicator of the strength of the East - West market, has fallen below $0.5 per barrel this year, indicating a weaker Western market and a stronger Eastern market. The strength in the Eastern market comes from Saudi Arabia's export control and China's SPR replenishment, while in the Western market, increased supply from Latin America and refinery maintenance in autumn have weakened the market, driving more arbitrage cargoes to the East. The short - term oil price is expected to fluctuate within a range, and a medium - term short - position allocation is recommended [2][3]. 3. Summary by Section Market News and Important Data - New York Mercantile Exchange's September light crude oil futures rose 8 cents to $63.96 per barrel, a 0.13% increase; October Brent crude oil futures rose 4 cents to $66.63 per barrel, a 0.06% increase. SC crude oil's main contract closed up 0.30% at 494 yuan per barrel [1]. - Indonesia plans to implement the B50 biodiesel mandatory blending policy in 2026 but may not start in January, and a series of tests may take up to eight months [1]. - Ukrainian President Zelensky discussed sanctions on Russian oil with Modi and agreed to meet at the United Nations General Assembly in September and plan reciprocal visits [1]. - There may be a misunderstanding of Russia's stance on the cease - fire in Ukraine. Russia requires Ukrainian troops to withdraw from some areas, but a US envoy may have misinterpreted it [1]. - The ability of US refiners to buy heavy crude oil at low prices will improve in the second half of the year due to increased production from Canada and the Middle East. The spread between heavy and light crude oil is an important indicator of refiner profitability. Drilling in California may also recover due to regulatory adjustments [1]. Investment Logic The Brent Dubai EFS falling below $0.5 per barrel indicates a weaker Western market and a stronger Eastern market. The East is strong due to Saudi export control and China's SPR replenishment, while the West is weak due to increased supply from Latin America and refinery maintenance, leading to more cargoes flowing to the East [2]. Strategy The short - term oil price is expected to fluctuate within a range, and a medium - term short - position allocation is recommended [3].