Report Summary 1. Report Industry Investment Rating No information provided on the industry investment rating. 2. Core Viewpoints - The fuel oil market is expected to show a range - bound oscillation pattern. Ample inventory levels may curb any significant increase in spot valuations. With upstream crude oil prices falling due to geopolitical events, fuel oil prices are under pressure and are expected to operate at a low level today. Specifically, FU2601 is expected to trade in the range of 2820 - 2880, and LU2511 in the range of 3360 - 3420 [3]. - The supply of blending raw materials is sufficient, but traders expect no oversupply of 0.5% sulfur - compliant low - sulfur fuel oil in the downstream marine fuel supply. However, the crack spread of low - sulfur fuel oil has been weak since early September. The high - sulfur fuel oil market may face pressure from concentrated arrivals of arbitrage cargoes from late September to early October, which may exacerbate the already ample inventory levels at the Singapore hub [3]. 3. Summary by Directory 3.1 Daily Prompt - The fuel oil market is expected to be range - bound. FU2601 is expected to operate between 2820 - 2880, and LU2511 between 3360 - 3420. The market is under pressure from upstream crude oil price drops and ample inventories [3]. 3.2 Long - Short Focus - Bullish factors: Not clearly stated. - Bearish factors: The demand side's optimism remains to be verified. There are risks such as potential intensification of sanctions against Russia and the extension of Russia's fuel oil export restrictions [4]. 3.3 Fundamental Data - **Supply - demand situation**: The supply of blending raw materials is sufficient, but there is no expected oversupply of low - sulfur fuel oil in the downstream. The high - sulfur fuel oil market may face pressure from concentrated cargo arrivals [3]. - **Basis**: The basis of Singapore high - sulfur fuel oil is 117 yuan/ton, and that of low - sulfur fuel oil is 64 yuan/ton, with the spot price higher than the futures price [3]. - **Inventory**: Singapore's fuel oil inventory in the week of September 24 was 2316.9 million barrels, an increase of 1 million barrels [3][8]. - **Market trend**: Prices are above the 20 - day moving average, which is flat [3]. - **Main positions**: High - sulfur main positions are long, with a reduction in long positions; low - sulfur main positions are short, with an increase in short positions [3]. 3.4 Spread Data No specific analysis of spread data is provided in the text. 3.5 Inventory Data - Singapore fuel oil inventory data from July 16 to September 24 shows fluctuations, with an inventory of 2316.9 million barrels on September 24, an increase of 1 million barrels compared to the previous period [8].

Report Summary 1. Report Industry Investment Rating No specific investment rating is provided in the report. 2. Core View The report analyzes the fuel oil market, indicating that due to increased supply of arbitrage goods and inflow of blending components, the fundamentals of the low - sulfur fuel oil market in Singapore may face greater pressure in the coming weeks. With crude oil prices falling during trading and lack of positive news, fuel oil is expected to trade at low levels. The expected trading ranges are 2800 - 2860 for FU2507 and 3310 - 3370 for LU2506 [3]. 3. Summary by Directory 3.1 Daily Tips - **Fundamentals**: Increased supply of arbitrage goods and blending components may pressure the low - sulfur fuel oil market in Singapore. In April, the total open interest of the near - month contract for high - sulfur fuel oil in Singapore decreased by 11.32% month - on - month to 9.37 million tons, the third consecutive monthly decline [3]. - **Basis**: The basis for Singapore high - sulfur fuel oil is $51/ton, and for low - sulfur fuel oil is $165/ton, with the spot price higher than the futures price [3]. - **Inventory**: As of the week of April 23, Singapore's fuel oil inventory was 25.989 million barrels, unchanged [3]. - **Market Trend**: Prices are below the 20 - day moving average, and the 20 - day moving average is downward [3]. - **Main Position**: High - sulfur main positions have shifted from short to long, and low - sulfur main positions have shifted from long to short [3]. - **Expectation**: With crude oil prices falling during trading and lack of positive news, fuel oil is expected to trade at low levels. The expected trading ranges are 2800 - 2860 for FU2507 and 3310 - 3370 for LU2506 [3]. 3.2 Multi - Short Focus - **Bullish Factors**: Not clearly stated in the report. - **Bearish Factors**: Not clearly stated in the report. - **Market Driver**: The market is driven by the combination of uncertain supply - side production cuts and neutral demand [4]. 3.3 Fundamental Data - **Futures Price Changes**: The current price of the FU main contract is 2865, up 35 (1.24%) from the previous value; the current price of the LU main contract is 3371, up 62 (1.87%) from the previous value [5]. - **Spot Price Changes**: The current price of Zhoushan high - sulfur fuel oil is $488/ton, up $7 (1.46%) from the previous value; the current price of Zhoushan low - sulfur fuel oil is $495/ton, up $5 (1.02%) from the previous value. The current price of Singapore high - sulfur fuel oil is $395.71/ton, up $9.32 (2.41%) from the previous value; the current price of Singapore low - sulfur fuel oil is $482.5/ton, up $10 (2.12%) from the previous value [6]. 3.4 Inventory Data - **Singapore Fuel Oil Inventory**: As of April 23, the inventory was 25.989 million barrels, unchanged from the previous period. The inventory has shown fluctuations in recent months [3][7].