Report Summary 1. Report Industry Investment Rating No information provided. 2. Core Viewpoints - This week, the high - sulfur cracking of Singapore 380cst oscillated strongly, the near - month spread strengthened slightly, the basis rebounded, and the EW spread continued to rebound. Affected by the impact of US sanctions on delivery warehouses, FU10 soared and then declined. The low - sulfur cracking weakened, the spread oscillated, the LU internal - external spread fluctuated around 10 US dollars, and the MF0.5 basis began to rebound [4]. - Fundamentally, Singapore's residue inventory increased, floating storage decreased, ARA's residue inventory remained flat, floating storage inventory increased significantly, and EIA's residue began to accumulate. The global supply - demand of high - sulfur fuel oil weakened. Due to the reshaping of logistics, the demand for high - sulfur marine fuel in Singapore provided support, the EW spread was still being repaired, and the domestic high - sulfur spot was still in excess. Be vigilant against over - heating sentiment. The new round of sanctions has a large potential impact on the supply of heavy crude oil in China, providing some support for the valuation of Asian fuel oil. This week, LU maintained an oscillation, the external MF0.5 basis began to rebound, and the opportunity for the low - sulfur to high - sulfur spread to widen in the fourth quarter can be noted [5]. 3. Data Summaries Rotterdam Fuel Oil Swap Data | Type | 2025/08/26 | 2025/09/01 | Change | | --- | --- | --- | --- | | Rotterdam 3.5% HSF O Swap M1 | 383.86 | 388.11 | - 0.95 | | Rotterdam 0.5% VLS FO Swap M1 | 452.63 | 456.37 | 0.00 | | Rotterdam HSFO - Brent M1 | - 6.45 | - 6.40 | - 0.26 | | Rotterdam 10ppm Gasoil Swap M1 | 651.89 | 658.54 | 4.38 | | Rotterdam VLSFO - Gasoil M1 | - 199.26 | - 202.17 | - 4.38 | | LGO - Brent M1 | 22.75 | 22.05 | - 0.10 | | Rotterdam VLSFO - HSFO M1 | 68.77 | 68.26 | 0.95 | [2] Singapore Fuel Oil Swap Data | Type | 2025/08/26 | 2025/09/01 | Change | | --- | --- | --- | --- | | Singapore 380cst M1 | 397.90 | 398.02 | - 3.14 | | Singapore 180cst M1 | 410.84 | 412.08 | - 4.08 | | Singapore VLSFO M1 | 487.99 | 482.37 | - 3.40 | | Singapore Gasoil M1 | 86.31 | 85.23 | - 0.71 | | Singapore 380cst - Brent M1 | - 5.01 | - 4.43 | 0.05 | | Singapore VLSFO - Gasoil M1 | - 150.70 | - 148.33 | 1.86 | [2] Singapore Fuel Oil Spot Data | Type | 2025/08/26 | 2025/09/01 | Change | | --- | --- | --- | --- | | FOB 380cst | 396.25 | 397.89 | - 1.96 | | FOB VLSFO | 489.51 | 485.45 | - 2.60 | | 380 Basis | - 2.00 | - 0.40 | 0.70 | | High - sulfur Internal - external Spread | 4.1 | 6.0 | 3.6 | | Low - sulfur Internal - external Spread | 9.5 | 14.9 | 6.9 | [3] Domestic FU Data | Type | 2025/08/26 | 2025/09/01 | Change | | --- | --- | --- | --- | | FU 01 | 2842 | 2824 | 12 | | FU 05 | 2799 | 2782 | 9 | | FU 09 | 2827 | 2737 | 2 | | FU 01 - 05 | 43 | 42 | 3 | | FU 05 - 09 | - 28 | 45 | 7 | | FU 09 - 01 | - 15 | - 87 | - 10 | [3] Domestic LU Data | Type | 2025/08/26 | 2025/09/01 | Change | | --- | --- | --- | --- | | LU 01 | 3488 | 3451 | - 28 | | LU 05 | 3451 | 3398 | - 37 | | LU 09 | 3460 | 3374 | 62 | | LU 01 - 05 | 37 | 53 | 9 | | LU 05 - 09 | - 9 | 24 | - 99 | | LU 09 - 01 | - 28 | - 77 | 90 | [4]

Report Summary 1. Report Industry Investment Rating - No content provided regarding the report industry investment rating. 2. Core Viewpoints - This week, the high - sulfur cracking of Singapore 380cst rebounded and then weakened, the near - month spread oscillated, and the EW spread oscillated. The 9 - 10 spread weakened to $3.5/ton, the basis oscillated at a low level (-$4), and the FU01 internal - external spread slightly weakened to -$0.8. The 0.5 cracking of Singapore oscillated and weakened, the 9 - 10 spread weakened to $2.75/ton, and the LU11 internal - external spread oscillated at $9. [4][5] - Singapore's land inventory decreased this week, but it was still not the highest in the same period of history. The floating storage decreased significantly month - on - month, Saudi Arabia's shipments decreased significantly, the arrivals oscillated this week, the shipments from the UAE rebounded month - on - month, and the net exports increased significantly. The land inventory in Fujairah, the Middle East, decreased, the floating storage inventory of high - sulfur and low - sulfur increased significantly, the ARA residue inventory increased, and the US residue inventory decreased, with a large inventory contradiction. [5] - The east - west divergence of high - sulfur continued. In the heavy - oil pattern, the cracking of Singapore 380cst was the weakest, and the premium of heavy - crude oil was the strongest. It is expected to return in both directions later. This week, LU remained weak, the basis of the external MF0.5 weakened again and then oscillated, the LU quota was issued, and the internal - external spread oscillated. [5] - In the short term, pay attention to the opportunity of the high - sulfur 380 EW spread widening. Fundamentally, the expected supply of high - sulfur will increase, and the supply - demand pattern will weaken. [5] 3. Data Summaries Rotterdam Fuel Oil Data | Type | 2025/08/15 | 2025/08/18 | 2025/08/19 | 2025/08/20 | 2025/08/21 | Change | | --- | --- | --- | --- | --- | --- | --- | | Rotterdam 3.5% HSF O Swap M1 | 390.27 | 385.76 | 383.41 | 386.27 | 386.40 | 0.13 | | Rotterdam 0.5% VLS FO Swap M1 | 452.69 | 446.79 | 445.77 | 447.87 | 452.12 | 4.25 | | Rotterdam HSFO - Brent M1 | - 4.33 | - 4.74 | - 5.18 | - 5.40 | - 6.25 | - 0.85 | | Rotterdam 10ppm Gasoil Swap M1 | 635.32 | 624.64 | 637.68 | 647.20 | 657.30 | 10.10 | | Rotterdam VLSFO - Gasoil M1 | - 182.63 | - 177.85 | - 191.91 | - 199.33 | - 205.18 | - 5.85 | | LGO - Brent M1 | 21.97 | 19.81 | 22.26 | 22.39 | 22.97 | 0.58 | | Rotterdam VLSFO - HSFO M1 | 62.42 | 61.03 | 62.36 | 61.60 | 65.72 | 4.12 | [2] Singapore Fuel Oil Data | Type | 2025/08/15 | 2025/08/18 | 2025/08/19 | 2025/08/20 | 2025/08/21 | | --- | --- | --- | --- | --- | --- | | Singapore 380cst M1 | 390.95 | 391.35 | 386.44 | 388.83 | 392.45 | | Singapore 180cst M1 | 403.51 | 403.47 | 401.16 | 402.12 | 401.16 | | Singapore VLSFO M1 | 476.79 | 476.24 | 474.78 | 475.48 | 480.02 | | Singapore Gasoil M1 | 82.76 | 82.50 | 83.18 | 84.72 | 86.11 | | Singapore 380cst - Brent M1 | - 4.09 | - 3.57 | - 4.67 | - 4.63 | - 5.30 | | Singapore VLSFO - Gasoil M1 | - 135.63 | - 134.26 | - 140.75 | - 151.45 | - 157.19 | [2] Singapore Fuel Oil Spot Data | Type | 2025/08/15 | 2025/08/18 | 2025/08/19 | 2025/08/20 | 2025/08/21 | Change | | --- | --- | --- | --- | --- | --- | --- | | FOB 380cst | 387.36 | 387.68 | 383.23 | 386.10 | 388.12 | 2.02 | | FOB VLSFO | 477.51 | 475.97 | 474.41 | 474.94 | 478.38 | 3.44 | | 380 Basis | - 3.40 | - 2.90 | - 3.25 | - 2.65 | - 1.15 | 1.50 | | High - sulfur Internal - External Spread | 2.5 | 0.1 | - 3.3 | - 1.8 | - 3.5 | - 1.7 | | Low - sulfur Internal - External Spread | 8.2 | 8.7 | 8.7 | 8.9 | 6.9 | - 2.0 | [3] Domestic FU Data | Type | 2025/08/15 | 2025/08/18 | 2025/08/19 | 2025/08/20 | 2025/08/21 | Change | | --- | --- | --- | --- | --- | --- | --- | | FU 01 | 2746 | 2739 | 2713 | 2719 | 2736 | 17 | | FU 05 | 2741 | 2735 | 2713 | 2712 | 2731 | 19 | | FU 09 | 2691 | 2713 | 2686 | 2687 | 2698 | 11 | | FU 01 - 05 | 5 | 4 | 0 | 7 | 5 | - 2 | | FU 05 - 09 | 50 | 22 | 27 | 25 | 33 | 8 | | FU 09 - 01 | - 55 | - 26 | - 27 | - 32 | - 38 | - 6 | [3] Domestic LU Data | Type | 2025/08/15 | 2025/08/18 | 2025/08/19 | 2025/08/20 | 2025/08/21 | Change | | --- | --- | --- | --- | --- | --- | --- | | LU 01 | 3420 | 3426 | 3417 | 3411 | 3443 | 32 | | LU 05 | 3395 | 3391 | 3390 | 3376 | 3413 | 37 | | LU 09 | 3423 | 3477 | 3452 | 3422 | 3456 | 34 | | LU 01 - 05 | 25 | 35 | 27 | 35 | 30 | - 5 | | LU 05 - 09 | - 28 | - 86 | - 62 | - 46 | - 43 | 3 | | LU 09 - 01 | 3 | 51 | 35 | 11 | 13 | 2 | [4]