Report Summary 1. Investment Rating - No investment rating for the industry is provided in the report. 2. Core View - Short - term oil prices are influenced by the Iranian situation. The US - Iran nuclear negotiations have a slim chance of reaching an agreement, but their progress needs close monitoring. Iranian oil competes with Russian oil, and Iran strongly demands the lifting of sanctions. Oil prices will be range - bound in the short term and a short - position is recommended in the medium term [2][3]. 3. Summary by Related Catalogs Market News and Key Data - On February 6, Saudi Arabia cut the price of its main crude oil grade for Asian buyers to the lowest level in years, indicating that global oil supply has exceeded demand. Saudi Aramco lowered the price of "Arab Light" oil for Asian buyers by 30 cents per barrel, which is the lowest since late 2020 [1]. - BP is seeking partners to increase production at the oldest oil field in the Middle East and share costs. The search for potential investors in the Kirkuk oil field in Iraq is underway, and it may last until next year. Large oil companies are showing renewed interest in Iraq, which has abundant and easily - mined oil resources. BP is seeking more international growth in oil and gas production, abandoning its previous pursuit of clean energy and net - zero emissions [1]. - On February 5, due to the US - Iran agreement to hold nuclear negotiations in Oman on Friday, confirmed by the White House and the Iranian Foreign Ministry, crude oil prices fell in the Asian morning session [1]. Investment Logic - Short - term oil prices are affected by the Iranian situation. The US - Iran nuclear negotiations face large differences, with a small hope of agreement, but progress should be closely monitored. Iranian oil competes with Russian oil, and the lifting of sanctions is Iran's strong demand [2]. Strategy - Oil prices will be range - bound in the short term and a short - position is recommended in the medium term [3].

Core Viewpoint - Saudi Arabia has reduced the price of its main crude oil grade for Asian buyers to the lowest level in years, indicating that global oil supply exceeds demand [2][7]. Group 1: Market News and Important Data - On February 6, Saudi Aramco lowered the price of "Arab Light" crude oil for Asian buyers by $0.30 per barrel, aligning it with the March benchmark price in the region, marking the lowest price level since the end of 2020 [2][7]. - BP is seeking partners to help increase production at one of the oldest oil fields in the Middle East, the Kirkuk oil field in Iraq, with potential investors already looking for opportunities. The timeline for any agreements is uncertain, but interest from major oil companies in Iraq is growing due to its rich oil resources and lower extraction costs compared to regions outside the Middle East [2][7]. - On February 5, oil prices fell during the Asian trading session due to the confirmation of nuclear talks between the U.S. and Iran scheduled for Friday in Oman, highlighting the geopolitical factors affecting oil prices [2][7]. Group 2: Investment Logic - Short-term oil prices are influenced by the situation in Iran, with the U.S. and Iran set to engage in formal nuclear negotiations. However, significant differences remain, making consensus unlikely, and the competition between Iranian oil and Russian oil is intensifying [8]. Group 3: Strategy - The strategy suggests a short-term range-bound movement in oil prices, with a mid-term bearish positioning anticipated [8].

Core Viewpoint - Oil prices have experienced significant fluctuations due to geopolitical factors, particularly the ongoing negotiations between the US and Iran, which are expected to provide guidance on market sentiment [4][5][15]. Oil Market Dynamics - On Thursday, oil prices fell, with WTI crude oil futures closing at $63.29 per barrel, down $1.85 or 2.84%, and Brent crude oil futures at $67.55 per barrel, down $1.91 or 2.75% [6][17]. - The market is currently facing a complex situation with high volatility, influenced by geopolitical tensions and a recent downturn in financial markets, which has affected investor sentiment [4][15]. - The US labor market is showing signs of weakness, with initial jobless claims rising by 22,000 to 231,000, exceeding market expectations [8][19]. Geopolitical Factors - The US-Iran nuclear negotiations are set to take place in Muscat, Oman, which has led to cautious market behavior as investors await the outcome [4][15]. - There is a notable lack of trust between the US and Iran, which has contributed to the volatility in oil prices as market assessments change [5][16]. Supply and Demand Trends - Saudi Arabia has reduced the price of its crude oil sold to Asia to the lowest level in years, indicating an oversupply in the global oil market [8][19]. - The price cut of 30 cents per barrel for Arab Light crude reflects a supply surplus, as it aligns with the March benchmark price in the region [19]. Market Sentiment and Future Outlook - Investors are advised to prepare for potential volatility in the oil market following the US-Iran negotiations, with the possibility of a rapid price increase if talks fail [5][16]. - Conversely, if negotiations proceed positively, there is a significant chance that oil prices may enter a downward trend dominated by oversupply [5][16].

Core Viewpoint - Saudi Arabia is reducing the price of its main crude oil grade sold to Asian buyers to the lowest level in years, indicating that global oil supply has exceeded demand [1] Price Adjustment - Saudi Aramco will lower the price of "Arab Light" crude oil for Asian buyers by $0.30 per barrel, aligning it with the March benchmark price in the region [1] - This price cut is below the lowest expectations from refiners and traders surveyed [1] - The new pricing represents the lowest oil price level for Saudi Arabia since the end of 2020 [1]