1. Report Industry Investment Rating - Not provided in the given content 2. Core Viewpoints of the Report - The fuel oil market is affected by multiple factors, with a neutral supply - demand situation. The low - sulfur market has sufficient supply, and the high - sulfur market also maintains an abundant supply. The demand for marine fuel oil is expected to increase before the Spring Festival. The market follows the trend of crude oil, with the low - sulfur fuel oil market structure being weak and the high - sulfur fuel oil market performing slightly stronger. FU2603 is expected to operate in the 2760 - 2810 range, and LU2603 in the 3250 - 3300 range [3] 3. Summary According to the Table of Contents 3.1 Daily Hints - The fundamentals of fuel oil show a neutral supply - demand situation. The 2 - month inflow of arbitrage cargoes from the West is expected to be high, keeping the low - sulfur market well - supplied. The high - sulfur fuel oil market also maintains abundant supply due to stable arrivals at the Singapore port. The demand for marine fuel oil is expected to increase before the Spring Festival. The basis shows that the spot is at a premium to the futures. The inventory in Singapore increased by 950,000 barrels to 25.529 million barrels in the week of February 4. The price is above the 20 - day line, and the 20 - day line is upward. The main positions in both high - sulfur and low - sulfur are short positions, with short positions decreasing. The overnight crude oil fluctuated, and the fuel oil followed. The low - sulfur fuel oil market structure is weak, and the high - sulfur fuel oil market is slightly stronger [3] - The prices of the FU and LU main contracts increased by 1.40% and 1.14% respectively, and the basis increased by 19.72% and 16%. The spot prices of various types of fuel oil also increased, with the Singapore high - sulfur fuel oil rising by 2.12% [5][6] 3.2 Long and Short Concerns - Bullish factors: Iranian situation turmoil and the issuance of Chinese import quotas [4] - Bearish factors: The optimism on the demand side remains to be verified, and the upstream crude oil is under pressure [4] - Market driver: The supply side is affected by geopolitical risks, and the demand is neutral [4] 3.3 Fundamental Data - The supply of fuel oil is abundant, with high inflows of arbitrage cargoes from the West for low - sulfur and stable arrivals at Singapore port for high - sulfur. The demand for marine fuel oil is expected to increase before the Spring Festival [3] 3.4 Spread Data - The report provides the spread between high - and low - sulfur futures, but no specific numerical analysis is given [10] 3.5 Inventory Data - The Singapore fuel oil inventory on February 4, 2026, was 25.529 million barrels, an increase of 950,000 barrels compared to the previous period. Historical inventory data from November 26, 2025, to February 4, 2026, are also provided [3][8]

1. Report Industry Investment Rating - No specific investment rating provided in the report 2. Core Viewpoints - The spot spread of 0.5% sulfur marine fuel oil turned into a premium in early January after being in the negative range for most of December and reached the highest level since September 16 on January 13, which supports the price. However, the overnight geopolitical concerns continued to decline, and attention should be paid to the callback risk of fuel oil. FU2603 is expected to trade in the range of 2540 - 2590, and LU2603 in the range of 3050 - 3100 [3] - The market structure of Asian low - sulfur fuel oil remains around the current level. The spot premium of 0.5% sulfur marine fuel oil rose for the second consecutive trading day to the highest level in nearly four months. Asian low - sulfur fuel oil market will receive more arbitrage cargoes from the West in January and February [3] - The market is affected by the resonance of supply influenced by geopolitical risks and neutral demand [4] 3. Summary by Directory 3.1 Daily Tips - The expected trading ranges for FU2603 and LU2603 are 2540 - 2590 and 3050 - 3100 respectively. Attention should be paid to the callback risk of fuel oil due to the decline in geopolitical concerns [3] 3.2 Multi - and Short - term Concerns - **Likely Positive Factors**: Iranian situation instability and the issuance of China's import quotas [4] - **Likely Negative Factors**: The optimism on the demand side remains to be verified, and the upstream crude oil is under pressure [4] - **Market Drivers**: The market is driven by the resonance of supply affected by geopolitical risks and neutral demand [4] 3.3 Fundamental Data - **Fundamentals**: The market structure of Asian low - sulfur fuel oil remains stable. The spot premium of 0.5% sulfur marine fuel oil reached a nearly four - month high. More Western arbitrage cargoes are expected in January and February. The assessment is neutral [3] - **Basis**: Singapore high - sulfur fuel oil is at $358/ton with a basis of - 10 yuan/ton, and low - sulfur fuel oil is at $429/ton with a basis of - 16 yuan/ton. The spot is nearly flat to the futures, and the assessment is neutral [3] - **Inventory**: Singapore's fuel oil inventory in the week of January 3 was 25.41 million barrels, a decrease of 1.34 million barrels. The assessment is bullish [3] - **Market Chart**: The price is near the 20 - day line, and the 20 - day line is upward. The assessment is bullish [3] - **Main Positions**: The main positions of high - sulfur fuel oil are short, with short positions decreasing; for low - sulfur fuel oil, the main positions are short, with short positions increasing. The assessment is bearish [3] 3.4 Spread Data - **Futures Price Changes**: The price of the FU main contract futures remained unchanged at 2586, while the LU main contract futures price decreased by 11 to 3087. The basis of FU increased by 4.41 to - 10, with an increase rate of 31.36%, and the basis of LU decreased by 38 to - 16, with a decrease rate of 175% [5] - **Spot Price Changes**: The prices of Zhoushan high - sulfur fuel oil decreased by 1 to 443, with a decrease rate of - 0.23%. Zhoushan low - sulfur fuel oil remained unchanged at 460. Singapore high - sulfur fuel oil increased by 1.06 to 358, with an increase rate of 0.30%. Singapore low - sulfur fuel oil decreased by 6.5 to 429, with a decrease rate of - 1.49%. Middle - East high - sulfur fuel oil decreased by 0.94 to 332.35, with a decrease rate of - 0.28%. Singapore diesel increased by 8.41 to 598.05, with an increase rate of 1.43% [6] 3.5 Inventory Data - Singapore's fuel oil inventory on January 3 was 25.41 million barrels, a decrease of 1.34 million barrels compared to the previous period. Inventory data from October 25, 2025, to January 3, 2026, are also presented [3][8]

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].