Summary of the Conference Call on Oil & Gas Industry Industry Overview - The report focuses on the oil and gas industry, particularly the impact of the US-Iran conflict on oil prices and supply disruptions in the Strait of Hormuz [1][8]. Key Points and Arguments Oil Price Projections - Oil prices have surged from US$60/bbl to over US$100/bbl, with potential for further increases depending on the duration of the Strait of Hormuz shutdown [1][8]. - Three scenarios modeled for the Strait of Hormuz shutdown: - **1 Month**: Peak monthly price of US$100/bbl, annual average of US$80/bbl [5][8]. - **3 Months**: Peak monthly price of US$140/bbl, annual average of US$100/bbl [5][8]. - **6 Months**: Peak monthly price of US$170/bbl, annual average of US$120/bbl [5][8]. Supply Disruption Analysis - A complete shutdown of the Strait of Hormuz could lead to a supply disruption of approximately 15MMbbls/d, with OPEC crude and condensate loadings down by 13.8MMbbls/d [2][11]. - Additional disruptions include 1.5MMbbls/d of LPG from Middle Eastern production, totaling 15.3MMbbls/d of liquid disruption [2]. Demand Destruction Estimates - Demand destruction could range from 0.3MMbbls/d to 2.3MMbbls/d for 2026, influenced by higher oil prices and constraints on availability [3][24]. - Specific impacts: - **1 Month Shutdown**: 0.3MMbbls/d annual disruption [3]. - **3 Months Shutdown**: 1MMbbls/d contraction [3]. - **6 Months Shutdown**: 2.3MMbbls/d contraction [3]. Mitigation Strategies - Liquidation of floating storage and Strategic Petroleum Reserve (SPR) releases could cushion supply losses, with a combined capacity of 550MMbbls [4]. - Assumptions include the quick liquidation of 150MMbbls of floating storage and a 400MMbbls/d SPR release over 180 days [4]. Market Reactions - Oil equities are currently pricing in a short-term conflict scenario with oil prices expected to stabilize around US$80-100/bbl for the year [6][9]. - Broader markets are not currently pricing in a recession, but prolonged disruptions could lead to significant economic consequences [6][9]. OPEC Production Insights - OPEC seaborne exports have fallen by about 14MMbbls/d since the onset of the Iran conflict, with current exports around 11MMbbls/d [11][19]. - The effective closure of the Strait of Hormuz has forced key OPEC producers to curtail output, with estimates of 8-10MMbbls/d of Gulf crude and condensate supply offline [11]. Investment Implications - The report suggests that a peace agreement between the US and Iran is crucial for reopening the Strait of Hormuz, as military escorts may not be a viable solution [8]. - The potential for a global recession is highlighted if disruptions last between three to six months [5][8]. Additional Important Content - The report includes detailed tables and exhibits summarizing supply and demand balances under different disruption scenarios, as well as projections for OECD commercial inventories and their relationship with oil prices [39][41]. - The analysis emphasizes the tight statistical relationship between OPEC production and seaborne exports, providing confidence in the reliability of current export trends as indicators of production [18][19].

Core Insights - The fourth quarter of 2025 saw mixed results for midcap stocks, with the Russell Midcap® Growth Index decreasing by 3.70% and the Russell Midcap® Value Index increasing by 1.41% [1] - The growth index's materials sector achieved the highest absolute return at 17.51%, but its contribution to overall returns was limited due to smaller weight in the index [1] - Midcap stocks generated positive returns in 2025, with the Russell Midcap Growth Index rising by 8.66%, trailing the Russell Midcap Value Index's 11.04% return [1] - The firm anticipates a favorable year ahead for equity markets, highlighting potential opportunities in Cyclicals, Healthcare, Information Technology, Financials, and Consumer Spending sectors through 2026 [1] Company Insights - Carpenter Technology Corporation (NYSE:CRS) was highlighted as a leading contributor in the fourth quarter 2025 investor letter, with a stock price of $401.08 per share as of March 03, 2026 [2] - Carpenter Technology Corporation's one-month return was 20.02%, and its shares gained 97.09% over the past 52 weeks, with a market capitalization of $19.981 billion [2] - The company produces specialty metals and alloys for various industries, notably aerospace and defense, and has shown strong performance due to growth in its aerospace engine maintenance, repair, and overhaul (MRO) end market [3] - Looking ahead, Carpenter Technology's exposure to airframe original equipment manufacturer (OEM) production is expected to accelerate as global jet manufacturers ramp up build rates in 2026, contributing to a tighter supply-demand balance for its specialty metals [3]

Financial Data and Key Metrics Changes - In Q4 2025, total revenue was $1.5 billion, with a gross margin of 14.8% and adjusted EBITDA of $17 million, resulting in an adjusted EBITDA margin of 1.2% [15][18] - Adjusted loss per share was $0.07, and there was a $12 million goodwill impairment related to restructuring within the managed transportation business [15][18] - For the full year, total revenue was $5.7 billion, with a gross margin of 16.2% and adjusted EBITDA of $109 million, yielding an adjusted EBITDA margin of 1.9% [18] Business Line Data and Key Metrics Changes - Brokerage revenue was $1.1 billion, down 14% year-over-year, representing 72% of total revenue, with a gross margin of 11.9%, which declined 160 basis points sequentially and 130 basis points year-over-year [15][16] - Complementary services revenue was $431 million, flat year-over-year, with a gross margin of 20.2%, down 110 basis points sequentially and 90 basis points year-over-year [16][17] - Last-mile business generated $298 million in revenue, up 3% year-over-year, while managed transportation revenue was $133 million, down 6% year-over-year [17] Market Data and Key Metrics Changes - Overall brokerage volume declined by 4% year-over-year, with truckload volume down 12% and less-than-truckload (LTL) volume up 31% [25][26] - The tightening of the full truckload market was driven by regulatory developments and capacity exits, leading to a significant increase in industry buy rates [16][31] - Tender rejections and load-to-truck ratios reached the highest levels of the year in December, indicating a tightening market [5][31] Company Strategy and Development Direction - The company is focused on optimizing its cost structure and gross profit per load while expanding its carrier base and growing stable sources of EBITDA [3][4] - RXO aims to leverage its technology platform and customer relationships to drive growth, particularly in managed transportation and LTL [10][11] - The company is investing in AI capabilities to enhance operational efficiency and improve service delivery [10][29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for a demand recovery, citing positive macroeconomic indicators and a strong late-stage sales pipeline [24][36] - The company anticipates continued soft demand in the first quarter of 2026, with expected adjusted EBITDA between $5 million and $12 million [22][35] - Management highlighted the importance of ongoing regulatory changes that could lead to a more favorable freight rate environment in the long term [36] Other Important Information - The company finalized a new $450 million asset-based lending facility, which replaces its previous $600 million revolver, providing better pricing and flexibility [20][21] - Adjusted free cash flow conversion was 43% for the year, with a target range of 40%-60% over the long term [19][22] Q&A Session Summary Question: What drove the 50% increase in the late-stage brokerage pipeline? - The increase is attributed to the focus on returning to growth mode post-Coyote integration, with a mix of existing and new enterprise customers [39] Question: How is AI helping with SMB outreach? - AI initiatives are driving productivity improvements, with a 19% increase in productivity year-over-year, and are expected to enhance margins [41][43] Question: How do company actions and market dynamics interact in 2026? - The company is confident in its ability to execute on its late-stage pipeline and resume historical outperformance, independent of market recovery [47] Question: What impact did winter weather have in Q1? - Winter weather resulted in an estimated $2 million negative EBITDA impact due to operational disruptions [50][52] Question: How is the company positioned for EBITDA improvement? - The company expects significant EBITDA improvement as gross profit per load recovers, with every dollar increase translating to over $1 million in annualized EBITDA [56][70]

Summary of Graphite Electrode Industry Chain Call Industry Overview - The call focused on the **Graphite Electrode**, **Needle Coke**, and **Electric Arc Furnace (EAF)** sectors, providing insights into their current status and future outlook [1] Key Insights Graphite Electrode Industry - The graphite electrode industry is perceived to be at a **cyclical bottom**, with low inventories and limited downside risk [1] - Near-term price recovery is primarily influenced by **raw material costs** rather than steel demand [1] - The **EU Carbon Border Adjustment Mechanism (CBAM)** and expansion of overseas EAFs are expected to provide a medium-term export advantage for Chinese high-power electrodes, which may help counteract weak domestic EAF performance [1] Needle Coke Market - The demand for **needle coke** is increasingly driven by **battery anode** requirements, marking a significant shift in the market dynamics [1] - Effective supply is constrained, and as import dependence decreases, profitability in the needle coke market is anticipated to rise over the next **2-3 years** [1] - The average price of needle coke in 2025 increased by approximately **RMB 1,000/ton** year-over-year, primarily due to raw material costs rather than demand [7] - The industry remains slightly unprofitable, with only low-cost inventory firms performing better [7] - Exports remained stable at **303kt**, with declines to Japan and the U.S. offset by gains in Italy, the Middle East, Southeast Asia, and Russia [7] - The 2026 outlook suggests a stable supply-demand balance, with prices still linked to costs and a modest improvement expected compared to 2025 [7] - By 2028, anode demand is projected to reach **1.6-1.8 million tons**, while electrode demand is expected to be around **0.5 million tons**, leading to total demand exceeding **2.2 million tons** [7] EAF Steel Production - EAF steel output for 2025 is projected at **105 million tons**, reflecting a **2.9% year-over-year decline**, with penetration rates at approximately **10.45%**, significantly below earlier policy expectations of **15%** [5] - The decline in coking coal and iron ore prices has restored the cost advantage of **Blast Furnace-Basic Oxygen Furnace (BF-BOF)** processes, putting pressure on EAF margins [5] - EAF operating rates are around **40%**, compared to **70%** for blast furnaces [5] - The product mix is shifting from rebar to higher-value products like **Hot-Rolled Coil (HRC)**, stainless, and specialty steels, which improves long-term quality but does not boost near-term volumes [5] - The outlook for EAF steel production indicates gradual growth from **2026 to 2028**, primarily driven by specialty steel EAFs, with no sharp policy-driven surges expected [5] Additional Important Points - The **UHP electrodes** now account for over **60%** of total production, indicating a shift towards higher performance products [5] - The decline in carbon prices from over **RMB 400/ton** to around **RMB 50/ton** has diminished the monetizable low-carbon advantage for EAFs [5] - The potential for a **seller's market** in needle coke may emerge if the growth in battery anode demand and feedstock tightness continue [7] This summary encapsulates the critical insights from the call, highlighting the current state and future expectations of the graphite electrode and needle coke industries, as well as the EAF steel production landscape.

Summary of Key Points from the Conference Call on the China Chemical Sector Industry Overview - The conference call focused on the China Chemical Sector, specifically discussing carbon fibre, MDI (Methylene Diphenyl Diisocyanate), electrolytes, and silicone products for the year 2026. Carbon Fibre (CF) - **Capacity Projections**: China's new carbon fibre capacity planned for 2026 is estimated at 110,000 tons, bringing the total capacity to 280,000 tons. However, the actual capacity expected to come online is between 220,000 to 230,000 tons due to uncertainties with smaller enterprises and industrial parks [2][2]. - **Demand Drivers**: Wind turbine blades are projected to remain the primary application, accounting for 40% of CF demand in 2025, with potential growth in 2026-2028. The mass production of China's homegrown aircraft is expected to further increase demand for high-performance carbon fibre in the aerospace sector [2][2]. - **Price Trends**: Prices for high-performance carbon fibre products (>T800) are expected to remain stable, while lower-end products (T300) may face price pressures due to sufficient capacity [2][2]. MDI (Methylene Diphenyl Diisocyanate) - **Supply Outlook**: New MDI capacity in Asia for 2026-2027 is anticipated from expansions at Wanhua Fujian (700,000 tons per annum), BASF Shanghai (160,000 tons per annum), and Kumho in South Korea (100,000 tons per annum), with most expected to launch in the second half of 2026 [3][3]. - **Demand Growth**: MDI demand is expected to grow by 4-5% in 2026, with domestic demand remaining resilient despite weaker exports to the US in 2025. A mild recovery in exports is anticipated year-over-year [3][3]. - **Price Stability**: MDI prices are expected to stabilize with potential increases of RMB 500-1,000 per ton in the first half of 2026, with a focus on peak-season demand and new capacity launches in the second half [3][3]. Electrolytes - **Price Forecast**: Electrolyte prices are projected to rise to RMB 32,000 per ton in 2026 from RMB 22,000 per ton in 2025, with a midpoint forecast of RMB 33,000-36,000 per ton for 2027-2030 [4][4]. - **Demand Growth**: China's electrolyte demand is expected to grow by 24% in 2026 and 30% in 2027, driven by increasing shipments of power and energy storage batteries [4][4]. - **Capacity Utilization**: Overall electrolyte capacity utilization is expected to improve in 2026 compared to 2025, with attention needed on how new LiPF6 capacity launches will impact supply-demand dynamics in the second half of 2026 [4][4]. Silicone - **Profitability Outlook**: The average selling price (ASP) of Silicone DMC is expected to increase to RMB 12,570 per ton in 2026 from RMB 12,113 per ton in 2025, with profits likely to rise by approximately RMB 300 per ton to RMB 680 per ton [5][5]. - **Capacity Management**: No new DMC capacity is expected in 2026, and industry self-discipline efforts have led to coordinated production cuts among mainstream producers to balance supply and demand [5][5]. - **Utilization Rates**: Industry capacity utilization is projected to be 60.5% in 2026, down 1.5 percentage points from 2025, as producers aim to defend prices through production control [5][5]. Risks and Considerations - **Market Risks**: The chemical sector faces risks including large price fluctuations due to volatile international oil prices, potential demand risks from macroeconomic uncertainties, and the possibility of new capacity coming online faster than expected, which could weaken chemical fundamentals [7][7].

Group 1 - Nickel prices reached a 19-month high amid volatile trading, influenced by rising inventories and production risks [1] - Three-month futures for nickel saw significant fluctuations, with a notable increase of 10.5% on Tuesday, driven by output risks in Indonesia and increased investment in China's metals markets [2] - Indonesia plans to reduce nickel production to align supply with demand and will impose fines on miners violating forestry permits, potentially leading to bankruptcies and output disruptions [3] Group 2 - Despite the recent price surge, global nickel inventories have increased significantly due to years of high output from Indonesia, which has kept prices in check during a broader metals market rally [4] - A recent drop in nickel prices was attributed to profit-taking after a substantial increase, with analysts indicating that the nickel market remains in surplus [5] - Other base metals, including copper and aluminum, have also seen price increases due to supply constraints and trade issues, with copper reaching record levels earlier in the week [6]

Phillips 66 Conference Call Summary Company Overview - **Company**: Phillips 66 (NYSE: PSX) - **Focus**: Downstream operations, including refining, midstream, and petrochemicals - **Positioning**: Positioned to deliver durable cash flow with a rateable dividend, emphasizing a lower volatility business model [4][7] Key Industry Insights - **Refining Dynamics**: - The potential return of Venezuelan crude supply is a significant topic, with Phillips 66 having the capacity to process Venezuelan crudes at its Gulf Coast refineries [8][10] - The company processes approximately 500,000 barrels per day of heavy crudes, including Western Canadian crude [12] - There is a belief that the refining sector will continue to experience tight capacity, with rationalizations expected to persist [17][18] Strategic Initiatives - **Refining Capacity**: - Anticipated net addition of 500,000 barrels per year in refining capacity, but overall capacity is expected to remain tight [18][20] - The company has integrated acquisitions like Wood River and Borger to enhance operational efficiency and market reach [21][22] - **Midcontinent Strategy**: - Phillips 66 views the Midcontinent as a strong competitive position, with linkages to the Gulf Coast enhancing operational flexibility [24][25] - The company is focused on disciplined capital allocation and potential M&A opportunities to strengthen its position in both the Midcontinent and Gulf Coast [26] Financial Performance and Projections - **Cash Flow and Capital Allocation**: - Expected operating cash flow of approximately $8 billion for 2026 and 2027, with a target to reduce debt from $21.8 billion to $17 billion by the end of 2027 [50][51] - The capital budget is projected at a low $2 billion, with a focus on returning value to shareholders through dividends and buybacks [51] - **Chemical Sector**: - The chemical industry is currently facing a downturn, but Phillips 66's joint venture, CP Chem, is performing well and generating cash [46][48] - Long-term fundamentals for the chemical sector remain positive, with continued demand growth expected [49] Operational Efficiency - **Cost Management**: - The company aims to reduce refining costs to $5.50 per barrel, having already achieved a reduction of $1 per barrel [28] - Continuous improvement in operational reliability and efficiency is a key focus, with a mindset shift towards integrated operations [27][43] Market Outlook - **Refining Margins**: - The company is cautiously optimistic about refining margins, expecting higher differentials in the future but acknowledging the challenges posed by lower crude prices [56] Additional Insights - **Asset Dispositions**: - Phillips 66 is actively reviewing its portfolio for non-core assets that can be monetized to free up capital for growth opportunities [55][60] - **Marketing Performance**: - The marketing segment is expected to maintain a consistent run rate, generating approximately $1.8 billion in revenue [62] This summary encapsulates the key points discussed during the Phillips 66 conference call, highlighting the company's strategic focus, market dynamics, and financial outlook.

Summary of Key Points from the Conference Call Industry Overview - **Industry**: Metals Market - **Outlook for 2026**: Positive outlook driven by rate cuts and demand for real assets, with tight supply-demand balances and low inventories supporting prices [1][3] Precious Metals - **Geopolitical Risks**: Recent events in Venezuela are expected to drive safe haven inflows, supporting precious metals prices [4] - **Gold Forecast**: Projected to reach $4,800/oz by 4Q26, supported by falling interest rates and strong physical demand from central banks and ETFs [4][23] - **Silver Dynamics**: - 2025 marked the peak deficit for silver, but prices continue to rise due to its precious metal characteristics and tight physical markets [4][30] - China's new export license requirements may further support silver prices [4][30] - Index rebalancing may bring short-term downside risks, with an estimated $5 billion of silver futures needing to be sold [4][13] Base Metals - **Preferred Metals**: Aluminium and copper are favored due to supply challenges and new demand sources [5] - **Aluminium Supply**: Constrained globally, with production growth expected to be just 1.4% in 2026 [65] - **Copper Market**: - US copper imports are surging, keeping ex-US markets tight [45] - Elevated supply disruptions from 2025 are expected to spill over into 2026, with a forecasted market deficit of ~600 kt for 2026 [64] - Demand from China has softened, but there are signs of potential growth in 2026 due to government support for renewables [54][55] Demand and Supply Dynamics - **Gold Demand**: Central banks added approximately 630 tonnes of gold in the first nine months of 2025, but demand is expected to slow due to higher prices [14] - **Jewelry Demand**: Mixed signals with a rebound in Q3, but notable softening in November, particularly in China [22] - **Solar Demand for Silver**: Likely peaked, with expected declines in installations due to price pressures [31] Market Risks and Opportunities - **Investment Demand**: Likely to remain a key driver for both precious and industrial metals, with potential physical squeezes due to low inventories [42] - **Tariff Implications**: US tariffs on refined copper could significantly impact market dynamics, with recommendations for phased tariffs starting in 2027 [46] - **Nickel Supply Concerns**: Fears of supply cuts from Indonesia have driven prices higher, but elevated inventories may moderate impacts [74][82] Conclusion - The metals market is poised for a strong performance in 2026, with both precious and base metals showing potential for price increases driven by macroeconomic factors and geopolitical risks. However, there are also significant risks related to demand sensitivity, supply disruptions, and regulatory changes that could impact market dynamics.

Summary of the Conference Call on China's Hotel Sector Industry Overview - The conference call focused on the **China Hotel Sector** and insights from hotel experts with extensive experience in the industry [2][3]. Key Takeaways 1. **Supply-Demand Balance**: - China's hotel supply growth has been outpacing demand since 2024. However, it is expected that the supply-demand balance will be achieved during the second half of 2027 to 2028 [2][3]. 2. **Segment Performance**: - The midscale and upper-midscale segments are projected to outperform in the next five years due to rising franchisee enthusiasm and lower investment requirements compared to international brands [2][4]. 3. **Inbound Tourism vs. Business Demand**: - Inbound tourist growth has not significantly offset the declining demand for business meetings, which saw a **60% year-over-year decrease in 2024** [2][4]. 4. **Impact of OTAs**: - Hotel chains are focusing more on membership development and have lower take rates compared to Online Travel Agencies (OTAs). This may lead to a gradual slowdown in OTA growth [2][3]. 5. **Conversion of Office Buildings**: - The conversion of office buildings into mid-end hotels is driving rapid supply growth. The share of office building conversions has increased to **15% year-to-date from 3-5% in 2024** [3][4]. 6. **Investment Preferences**: - Limited and selective-service hotels with **100-150 rooms** and a capital expenditure (CAPEX) of within **Rmb200,000** are becoming more popular among franchisees due to lower investment and higher returns compared to international brands [4]. 7. **Challenges for High-End Brands**: - Chinese hotel groups face challenges in developing high-end brands, including insufficient brand awareness, lack of managerial teams, and no cost advantages compared to international brands [5]. 8. **Market Positioning**: - Among Chinese hotel groups, H World is viewed as the leader in room rates and brand awareness, followed by Atour, Jinjiang, and BTG. The potential entry of OTAs into hotel operations could intensify competition in the low-to-medium-end segments [5]. Risks and Opportunities - **Downside Risks**: - Continued economic sluggishness, slower-than-expected growth in peak season tourist traffic, adverse weather conditions, and potential disasters such as earthquakes or epidemics [8][9][10][11]. - **Upside Risks**: - A better-than-expected macroeconomic environment and growth in domestic tourism could positively impact the hotel sector [8][9][10][11]. Company Ratings - **Top Picks**: Atour and Trip.com (TCOM) are highlighted as top investment choices with a **Buy** rating. - **Neutral Ratings**: H World and Shangri-La are rated as **Neutral** [2][24]. This summary encapsulates the essential insights and projections regarding the Chinese hotel sector, highlighting both the challenges and opportunities that lie ahead.

Financial Data and Key Metrics Changes - The company reported third quarter earnings per share of $1.65, reflecting a 6% year-over-year increase [5] - Total marine revenues decreased by $1.2 million compared to Q3 2024, with operating income down by $11 million or 11% sequentially [12] - Cash flow from operating activities was $227 million, with free cash flow improving to $160 million for the quarter [20][21] Business Line Data and Key Metrics Changes - Inland marine transportation experienced near-term softness, with barge utilization averaging in the mid-80% range and spot market rates declining in the low to mid-single digits [6][7] - Coastal marine transportation fundamentals remained strong, with barge utilization in the mid to high 90% range and operating margins around 20% [8][15] - Power generation revenues increased by 56% year-over-year, driven by robust demand from data centers and prime power customers [9][17] Market Data and Key Metrics Changes - The inland business contributed approximately 80% of marine transportation segment revenue, with revenues declining 3% compared to Q3 2024 [12][14] - Coastal revenues increased 13% year-over-year, supported by improved pricing and fewer planned shipyards [15] - The distribution and services segment saw revenues of $386 million, a 12% increase year-over-year, with operating income rising by 40% [16] Company Strategy and Development Direction - The company remains focused on maintaining strong operational execution and cost management to navigate challenging market conditions [5][10] - There is a commitment to return capital to shareholders while pursuing long-term value-creating investments and acquisitions [22][23] - The company anticipates stable market conditions with early signs of improvement in the fourth quarter, particularly in inland barge utilization [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the inland barge cycle, indicating it still has years to go despite near-term challenges [24] - There are expectations for modest improvements in inland revenues and margins, assuming tighter barge availability holds in the fourth quarter [26] - The outlook for the distribution and services segment reflects strength in expanding markets, particularly in power generation [27][29] Other Important Information - The company expects capital expenditures to range between $260 million and $290 million for the year, with a focus on marine maintenance and growth capital spending [22] - The balance sheet remains strong, with total available liquidity of approximately $380 million as of September 30, 2025 [21] Q&A Session Summary Question: Insights on Power Generation Growth - Management acknowledged that while there will be some lumpiness in the power generation business, the backlog is at a record level and is expected to continue growing [34][35] Question: Update on Inland Market Conditions - Management noted that the inland market experienced a confluence of factors leading to lower utilization in Q3, but there are signs of improvement entering Q4 [36][38] Question: Spot Market Rates Trends - Spot pricing was reported to be down 4%-5% in Q3, but there are expectations for firming up in Q4 [46][47] Question: Fleet and Contract Renewals - Approximately 40% of the inland term contract portfolio is expected to renew in Q4, which is a significant portion of the business [85] Question: Strategic Opportunities in Inland Market - Management indicated that there are some strategic opportunities arising from the current softness in the inland market, although the overall market remains strong [93] Question: Coastal Market Sensitivity - The coastal market is less sensitive to crude slate changes compared to inland, with a stable supply-demand balance expected [95]