Group 1: Report Summary - The report is a fuel oil daily report dated August 20, 2025 [1] Group 2: Market Data - On August 20, 2025, the FU main contract was at 2718, up 32 from the previous day; the FU main contract position was 123,000 lots, up 28,000 lots; the FU warehouse receipt was 80,710 tons, unchanged [3] - The LU main contract was at 3446, down 20 from the previous day; the LU main contract position was 40,000 lots, down 4,000 lots; the LU warehouse receipt was 11,110 tons, unchanged [3] - The FU10 - 1 spread was -1, up 5; the LU10 - 11 spread was 3, down 4; the LU - FU main contract spread was 728, down 52 [3] - The FU09 - foreign market 08 spread was -19.1, down 1.2; the LU10 - foreign market 09 spread was 5.5, down 2.1 [3] Group 3: Market Overview - Important news: On Tuesday evening, Ukrainian drones attacked an oil pumping station in Russia's Tambov region, causing an oil supply interruption. Oil was then transported through the Druzhba pipeline to Hungary and Slovakia [6] Group 4: Market Analysis - High - sulfur fuel oil: Asian near - term high - sulfur supply and inventory remain at high levels. Ukrainian bombings of Russian refineries continue, affecting some refinery capacities. Mexican high - sulfur exports are falling. Middle - East high - sulfur exports are at a stable low level. High - sulfur supply pressure in the third quarter is slightly less than expected. Seasonal power - generation demand is gradually declining, and domestic feedstock demand support is not obvious after the increase in the consumption - tax deduction ratio. Singapore's high - sulfur bunker fuel loading volume in July reached the highest level since IMO2020 [7] - Low - sulfur fuel oil: The low - sulfur fuel oil spot premium is continuously falling. The increase in spot - window sellers and near - term supply has hit the low - sulfur spot price. Low - sulfur supply is continuously rising, and downstream demand has no specific drivers. Nigeria's RFCC unit has intermittent maintenance. South Sudan's low - sulfur raw - material supply is returning to early 2024 levels. Al - Zour's low - sulfur exports have rebounded to the high level of normal refinery operation, with a significant increase in exports to Singapore. The Chinese low - sulfur market has abundant supply and stable demand [7] Group 5: Other Information - The Singapore paper - cargo market: The high - sulfur Sep/Oct spread remains at $1.5/ton, and the low - sulfur Sep/Oct spread remains at $1.0/ton [8]

Report Summary 1. Report Industry Investment Rating No specific industry investment rating is provided in the report. 2. Core Viewpoints - The Asian high - sulfur fuel oil market supply is expected to remain stable, with the cross - month spread narrowing to the lowest level since January. The expected increase in high - sulfur fuel oil demand during the Middle - East summer peak has not had a substantial impact on supply. The market is currently neutral [3]. - The basis shows that the spot price is at a premium to the futures price, which is a bullish signal. Singapore's fuel oil inventory decreased in the week of June 18, also a bullish factor. The price is above the 20 - day line, and the 20 - day line is trending upward, which is bullish. However, the main positions in both high - sulfur and low - sulfur fuel oil are short, and the short positions are increasing, which is bearish [3]. - With the significant decline in crude oil prices and the upcoming negotiation between Iran and Israel, the fuel oil market is under pressure. It is expected to trade in a low - level range in the short term. The FU2509 is expected to trade between 2980 - 3030, and the LU2508 between 3680 - 3740 [3]. 3. Summary by Directory 3.1 Daily Tips - **Fundamentals**: Asian high - sulfur fuel oil supply is stable, demand is moderate, and the cross - month spread is narrowing. The expected demand increase in the Middle - East has not changed the supply situation [3]. - **Basis**: Singapore high - sulfur fuel oil basis is 158 yuan/ton, and low - sulfur is 78 yuan/ton, with spot premiums over futures [3]. - **Inventory**: Singapore fuel oil inventory in the week of June 18 was 2289.9 million barrels, a decrease of 22 million barrels [3][8]. - **Disk**: The price is above the 20 - day line, and the 20 - day line is trending upward [3]. - **Main Positions**: High - sulfur and low - sulfur main positions are short, and short positions are increasing [3]. - **Expectation**: Crude oil prices are falling, and the negotiation between Iran and Israel restricts the upside of fuel oil. Short - term low - level range - bound trading is expected [3]. 3.2 Multi - Empty Concerns - **Bullish Factors**: Deterioration of the Middle - East situation and the expected increase in summer power - generation demand [4]. - **Bearish Factors**: The optimistic demand outlook needs to be verified, and there is a possibility of relaxed sanctions on Russia [4]. - **Market Drivers**: The supply is affected by geopolitical risks, and demand is neutral [4]. 3.3 Fundamental Data - **Futures Prices**: The previous FU main - contract futures price was 3206, and the current price is 3020, a decrease of 186 (5.80%). The previous LU main - contract futures price was 3825, and the current price is 3686, a decrease of 139 (3.63%) [5]. - **Basis**: Singapore high - sulfur fuel oil basis is 158 yuan/ton, and low - sulfur is 78 yuan/ton [3]. - **Inventory**: Singapore fuel oil inventory data from April 9 to June 18 shows fluctuations, with a decrease of 22 million barrels in the week of June 18 [8]. 3.4 Spread Data The report presents a graph of the high - low sulfur futures spread from 2021 - 09 - 07 to 2025 - 06 - 07, but no specific numerical analysis of the spread is provided [13]. 3.5 Inventory Data - Singapore fuel oil inventory data from April 9 to June 18 shows that the inventory on June 18 was 2289.9 million barrels, a decrease of 22 million barrels compared to the previous week [8].