Summary of Key Points from the Conference Call Industry and Company Overview - The conference call primarily discusses the implications of oil prices, inflation, and central bank policies on equities, credit markets, and commodities, particularly focusing on the energy sector and macroeconomic conditions. Core Insights and Arguments 1. **Brent Oil Pricing and Market Valuations** - Current equity and credit valuations imply Brent oil prices between approximately $80-110 per barrel. If Brent prices rise to levels of $150-180 per barrel, global equity multiples could decline to around 12x, and investment-grade (IG) credit spreads could widen to about 180 basis points [8][11][15] 2. **Inflation vs. Growth Impact on Fed Policy** - The Federal Reserve is expected to prioritize growth over inflation in its policy decisions. Forecasts indicate two rate cuts in September and December 2026, allowing time to assess inflation pressures. In a scenario of demand destruction, the Fed's policy would lean towards easing to support the economy [11][15][18] 3. **Central Banks' Reactions to Oil Prices and Inflation** - Central banks in Europe and Japan are anticipated to adopt hawkish stances, with expected rate hikes in June and September 2026. However, if demand destruction occurs, a pivot towards easing may be necessary. Japan's economy is relatively resilient due to high domestic refining capacity and lower dependence on Middle Eastern LNG imports [15][16][18] 4. **Gold Market Dynamics** - The performance of gold is contingent on geopolitical de-escalation and Fed policy. Currently trading below the base case of $4,800 per ounce, gold may face liquidation risks if inflation pressures prevent the Fed from easing [18][20] 5. **Private Credit Market Risks** - Concerns about private credit are significant but not systemic. Default rates are expected to reach 8%, particularly in the software and AI sectors, but overall market fundamentals remain solid with low fund leverage. There has been no sustained increase in corporate debt relative to GDP, indicating limited systemic stress [24][25][28] Other Important Insights - Historical data suggests that during significant oil shocks, the pass-through effect to core CPI has been limited, except during the recent Russia-Ukraine conflict [12][14] - The energy balance of major economies indicates varying levels of exposure to energy crises, with Japan being at the highest risk due to its net energy import status [16][18] - The relationship between ETF gold holdings and the Federal policy rate shows an inverse correlation, indicating that changes in Fed policy significantly impact gold investment strategies [22][23] This summary encapsulates the critical discussions and insights from the conference call, highlighting the interconnectedness of oil prices, inflation, and central bank policies in shaping market dynamics.

Report Summary 1. Report Industry Investment Rating - No investment rating information is provided in the report. 2. Core View - No clear core view is presented in the provided content. 3. Summary by Relevant Directory 3.1. Basis and Calendar Spread - **Basis**: The Shandong basis (+80, non - Jingbo) was -59 on 3/3, 29 on 3/24, -152 on 3/27, 67 on 3/30, and -32 on 3/31, with a daily change of -99 on 3/31. The East China basis (Zhenjiang warehouse) was -139 on 3/3, 49 on 3/24, -82 on 3/27, -63 on 3/30, and -62 on 3/31, with a daily change of 7 on 3/31. The South China basis (Foshan warehouse) was -189 on 3/3, 49 on 3/24, -82 on 3/27, -63 on 3/30, and -62 on 3/31, with a daily change of 1 on 3/31 [3]. - **Calendar Spread**: The 04 - 05 spread was -17 on 3/3, 3 on 3/24, -4 on 3/27, -3 on 3/30, and 0 on 3/31, with a daily change of 3 on 3/31. The 04 - 06 spread was -14 on 3/3, 8 on 3/24, -4 on 3/27, 6 on 3/30, and 5 on 3/31, with a daily change of -1 on 3/31. The 06 - 09 spread was 64 on 3/3, 245 on 3/24, 267 on 3/27, 218 on 3/30, and 233 on 3/31, with a daily change of 15 on 3/31 [3]. 3.2. Futures Contract Data - **BU Main Contract**: The price of the BU main contract was 3639 on 3/3, 4401 on 3/24, 4532 on 3/27, 4513 on 3/30, and 4512 on 3/31, with a daily change of -1 on 3/31. The trading volume was 815412 on 3/3, 1276564 on 3/24, 1165126 on 3/27, 1073272 on 3/30, and 1175067 on 3/31, with a daily change of 101795 on 3/31. The open interest was 385341 on 3/3, 348866 on 3/24, 378989 on 3/27, 372230 on 3/30, and 370991 on 3/31, with a daily change of -1239 on 3/31 [3]. 3.3. Spot Price - **Brent Crude Oil**: The price was 72.6 on 3/3, 100.8 on 3/24, 107.9 on 3/27, 114.5 on 3/30 and 3/31, with a daily change of 0.0 on 3/31 [3]. - **Asphalt Spot Price**: Jingbo's price was 3520 on 3/3, 4350 on 3/24, 4300 on 3/27, 4450 on 3/30 and 3/31, with a daily change of 0 on 3/31. Shandong (non - Jingbo) was 3500 on 3/3, 4350 on 3/24, 4300 on 3/27, 4500 on 3/30, and 4400 on 3/31, with a daily change of -100 on 3/31. Zhenjiang warehouse was 3500 on 3/3, 4450 from 3/24 to 3/31, with a daily change of 0 on 3/31. Foshan warehouse was 3450 on 3/3, 4450 from 3/24 to 3/31, with a daily change of 0 on 3/31 [3]. 3.4. Profit - **Asphalt - Marrow Profit**: The profit was 399 on 3/3, -127 on 3/24, -498 on 3/27, -716 on 3/30, and -718 on 3/31, with a daily change of -1 on 3/31 [3].

Report Summary 1. Report Industry Investment Rating - No information provided 2. Core View - No information provided 3. Summary by Relevant Catalog 3.1 Basis and Month Spread - **Basis**: On March 31st, the Shandong basis (+80) (non - Jingbo) was -32 with a daily change of -99; the East China basis (Zhenjiang warehouse) was -62 with a daily change of 7; the South China basis (Foshan warehouse) was -62 with a daily change of 1 [3]. - **Month Spread**: On March 31st, the 04 - 05 spread was 0 with a daily change of 3; the 04 - 06 spread was 5 with a daily change of -1; the 06 - 09 spread was 233 with a daily change of 15 [3]. 3.2 Futures Contract - **BU Main Contract**: On March 31st, the price of the BU main contract was 4512, with a daily change of -1 [3]. - **Trading Volume**: On March 31st, the trading volume was 1175067, with a daily increase of 101795 [3]. - **Open Interest**: On March 31st, the open interest was 370991, with a daily decrease of 1239 [3]. - **Combined Contract**: On March 31st, the combined contract was 35600, with no daily change [3]. 3.3 Crude Oil and Asphalt Prices - **Brent Crude Oil**: On March 31st, the price was 114.5, with no daily change [3]. - **Asphalt Prices**: On March 31st, the price of Jingbo asphalt was 4450 with no change; the price of Shandong (non - Jingbo) asphalt was 4400, with a daily decrease of 100; the price of Zhenjiang warehouse asphalt was 4450 with no change; the price of Foshan warehouse asphalt was 4450 with no change [3]. 3.4 Profit - **Asphalt Marey Profit**: On March 31st, the asphalt Marey profit was -718, with a daily decrease of 1 [3].

1. Report Industry Investment Rating - No relevant information provided 2. Core View of the Report - No clear core view presented in the given content 3. Summary by Relevant Catalogs 3.1. Basis & Spread - The Shandong basis (+80) (non - Jingbo) changed from - 19 on 3/2 to 67 on 3/30, with a daily change of 219 and a weekly change of 358 [3][6] - The East China basis (Zhenjiang warehouse) was - 63 on 3/30, with a daily change of 19 and a weekly change of 148 [3][6] - The South China basis (Foshan warehouse) was - 63 on 3/30, with a daily change of 19 and a weekly change of 148 [3][6] - The 04 - 05 spread was - 3 on 3/30, with a daily change of T and a weekly change of 17 [3][6] - The 04 - 06 spread was 6 on 3/30, with a daily change of 10 and a weekly change of 27 [3][6] - The 06 - 09 spread was 218 on 3/30, with a daily change of - 49 and a weekly change of - 66 [3][6] 3.2. Futures Contract Indicators - The BU main contract price was 4513 on 3/30, down 19 from the previous day and down 148 from the previous week [3][6] - The trading volume of the BU main contract was 1073272 on 3/30, down 91854 from the previous day and down 17103 from the previous week [3][6] - The open interest of the BU main contract was 372230 on 3/30, down 6759 from the previous day and down 5536 from the previous week [3][6] - The total contract quantity was 35600 on 3/30, down 500 from the previous day and down 500 from the previous week [3][6] 3.3. Crude Oil and Spot Prices - Brent crude oil price was 114.5 on 3/30, up 6.6 from the previous day and up 13.3 from the previous week [3][6] - Jingbo asphalt price was 4450 on 3/30, up 150 from the previous day and up 170 from the previous week [3][6] - Shandong (non - Jingbo) asphalt price was 4500 on 3/30, up 200 from the previous day and up 210 from the previous week [3][6] - Zhenjiang warehouse asphalt price was 4450 on 3/30, with no daily or weekly change [3][6] - Foshan warehouse asphalt price was 4450 on 3/30, with no daily or weekly change [3][6] 3.4. Profit - The asphalt - Marey profit was - 716 on 3/30, down 219 from the previous day and down 512 from the previous week [3][6]

1. Report Industry Investment Rating - No relevant information provided 2. Core Viewpoints - No clear core viewpoints are presented in the provided content 3. Summary by Relevant Catalogs 3.1. Basis and Spread - Shandong basis (+80) (non - Jingbo) changed from -19 on 3/2 to 67 on 3/30, with a daily change of 219 [3] - East China basis (Zhenjiang warehouse) changed from -119 on 3/2 to -63 on 3/30, with a daily change of 19 [3] - South China basis (Foshan warehouse) changed from -129 on 3/2 to -63 on 3/30, with a daily change of 19 [3] - 04 - 05 spread changed from -19 on 3/2 to -3 on 3/30 [3] - 04 - 06 spread changed from -26 on 3/2 to 6 on 3/30, with a change of 10 [3] - 06 - 09 spread changed from 35 on 3/2 to 218 on 3/30, with a change of -49 [3] 3.2. Futures Contract Information - BU main contract price changed from 3529 on 3/2 to 4513 on 3/30, with a daily change of -19 [3] - Trading volume changed from 650702 on 3/2 to 1073272 on 3/30, with a decrease of 91854 [3] - Open interest changed from 365159 on 3/2 to 372230 on 3/30, with a decrease of 6759 [3] - Delivery volume changed from 24640 on 3/2 to 35600 on 3/30, with a decrease of 500 [3] 3.3. Crude Oil and Spot Prices - Brent crude oil price changed from 71.9 on 3/2 to 114.5 on 3/30, with a daily change of 6.6 [3] - Jingbo spot price changed from 3430 on 3/2 to 4450 on 3/30, with an increase of 150 [3] - Shandong (non - Jingbo) spot price changed from 3430 on 3/2 to 4500 on 3/30, with an increase of 200 [3] - Zhenjiang warehouse spot price remained at 4450 from 3/23 to 3/30 [3] - Foshan warehouse spot price remained at 4450 from 3/23 to 3/30 [3] 3.4. Profit - Asphalt MRE profit changed from 386 on 3/2 to -716 on 3/30, with a decrease of 219 [3]

1. Report Industry Investment Rating - No relevant information provided 2. Core Viewpoints of the Report - No clear core viewpoints are presented in the given content 3. Summary by Related Catalogs 3.1 Basis and Spread - The Shandong basis (+80) (non - Jingbo) was -6 on 2/27, -177 on 3/20, -130 on 3/25, -183 on 3/26, -152 on 3/27, with a daily change of 31 [3] - The East China basis (Zhenjiang warehouse) was -66 on 2/27, -107 on 3/20, -180 on 3/25, -93 on 3/26, -82 on 3/27, with a daily change of 11 [3] - The South China basis (Foshan warehouse) was -146 on 2/27, -107 on 3/20, -210 on 3/25, -93 on 3/26, -82 on 3/27, with a daily change of 11 [3] - The 04 - 05 spread was -20 on 2/27, -10 on 3/20, 13 on 3/25, 11 on 3/26, -4 on 3/27, with a daily change of -15 [3] - The 04 - 06 spread was -26 on 2/27, -5 on 3/20, 15 on 3/25, 7 on 3/26, -4 on 3/27, with a daily change of -11 [3] - The 06 - 09 spread was 32 on 2/27, 277 on 3/20, 253 on 3/25, 273 on 3/26, 267 on 3/27, with a daily change of -6 [3] 3.2 Futures Contracts - The BU main contract price was 3346 on 2/27, 4457 on 3/20, 4410 on 3/25, 4543 on 3/26, 4532 on 3/27, with a daily change of -11 [3] - The trading volume was 224662 on 2/27, 1191491 on 3/20, 1073847 on 3/25, 1173067 on 3/26, 1165126 on 3/27, with a daily change of -7941 (-2) [3] - The open interest was 315006 on 2/27, 370977 on 3/20, 350606 on 3/25, 380087 on 3/26, 378989 on 3/27, with a daily change of -1098 (8) [3] - The warehouse receipt was 23510 on 2/27, 36100 from 3/20 to 3/26, and N/A on 3/27 [3] 3.3 Spot Market - Brent crude oil price was 70.8 on 2/27, 109.3 on 3/20, 100.8 on 3/25, 104.1 on 3/26, 107.9 on 3/27, with a daily change of 3.9 [3] - Jingbo asphalt price was 3290 on 2/27, 4220 on 3/20, 4250 on 3/25, 4300 on 3/26 and 3/27, with a daily change of 0 [3] - Shandong (non - Jingbo) asphalt price was 3260 on 2/27, 4200 on 3/20 and 3/25, 4280 on 3/26, 4300 on 3/27, with a daily change of 20 [3] - Zhenjiang warehouse asphalt price was 3280 on 2/27, 4350 on 3/20, 4230 on 3/25, 4450 on 3/26 and 3/27, with a daily change of 0 [3] - Foshan warehouse asphalt price was 3200 on 2/27, 4350 on 3/20, 4200 on 3/25, 4450 on 3/26 and 3/27, with a daily change of 0 [3] 3.4 Profit - The asphalt - Ma Rui profit was -661 on 3/20, -211 on 3/25, -315 on 3/26, and N/A on 3/27 [3]

Group 1: Report General Information - The report is an asphalt morning report from Jia'an Futures' research center's energy and chemical team, dated March 27, 2026 [2][6] Group 2: Market Data and Changes Basis and Spread - The Shandong basis (+80) (non - Jingbo) was -17 on 2/26, -195 on 3/19, 29 on 3/24, -130 on 3/25, -183 on 3/26, with a daily change of -53 [3] - The East China basis (Zhenjiang warehouse) was -57 on 2/26, -75 on 3/19, 49 on 3/24, -180 on 3/25, -93 on 3/26, with a daily change of 87 [3] - The South China basis (Foshan warehouse) was -157 on 2/26, -75 on 3/19, 49 on 3/24, -210 on 3/25, -93 on 3/26, with a daily change of 117 [3] - The 04 - 05 spread was -17 on 2/26, -1 on 3/19, 3 on 3/24, 13 on 3/25, 11 on 3/26, with a daily change of -2 [3] - The 04 - 06 spread was -22 on 2/26, 10 on 3/19, 8 on 3/24, 15 on 3/25, 7 on 3/26, with a daily change of -8 [3] - The 06 - 09 spread was 36 on 2/26, 308 on 3/19, 245 on 3/24, 253 on 3/25, 273 on 3/26, with a daily change of 20 [3] Futures Contract - The BU main contract price was 3357 on 2/26, 4625 on 3/19, 4401 on 3/24, 4410 on 3/25, 4543 on 3/26, with a daily change of 133 [3] - The trading volume of the BU main contract was 270399 on 2/26, 1452703 on 3/19, 1276564 on 3/24, 1073847 on 3/25, 1173067 on 3/26, with a daily change of 99220 and a weekly change of -27 [3] - The open interest of the BU main contract was 318653 on 2/26, 400963 on 3/19, 348866 on 3/24, 350606 on 3/25, 380087 on 3/26, with a daily change of 29481 and a weekly change of -2 [3] - The warehouse receipts of the BU main contract were 23510 on 2/26, 36100 from 3/19 to 3/26, with a daily change of 0 [3] Crude Oil and Spot Prices - Brent crude oil price was 71.2 on 2/26, 112.0 on 3/19, 101.2 on 3/24, 100.8 on 3/25, 104.1 on 3/26, with a daily change of 3.3 [3] - Jingbo's asphalt price was 3300 on 2/26, 4200 on 3/19, 4350 on 3/24, 4250 on 3/25, 4300 on 3/26, with a daily change of 50 [3] - Shandong (non - Jingbo) asphalt price was 3260 on 2/26, 4350 on 3/19, 4350 on 3/24, 4200 on 3/25, 4280 on 3/26, with a daily change of 80 [3] - Zhenjiang warehouse asphalt price was 3300 on 2/26, 4550 on 3/19, 4450 on 3/24, 4230 on 3/25, 4450 on 3/26, with a daily change of 220 [3] - Foshan warehouse asphalt price was 3200 on 2/26, 4550 on 3/19, 4450 on 3/24, 4200 on 3/25, 4450 on 3/26, with a daily change of 250 [3] Profit - The asphalt - Ma Rui profit was not available on 2/26, -782 on 3/19, -145 on 3/24, -211 on 3/25, -315 on 3/26, with a daily change of -105 [3]

1. Report Industry Investment Rating - No relevant content found 2. Core Viewpoints - No relevant content found 3. Summary by Related Catalogs 3.1 Basis and Spread - The Shandong basis (+80) (non-Jingbo) changed from 22 on 2/25 to -130 on 3/25, with a daily change of -159 [3]. - The East China basis (Zhenjiang warehouse) changed from -28 on 2/25 to -180 on 3/25, with a daily change of -229 [3]. - The South China basis (Foshan warehouse) changed from -128 on 2/25 to -210 on 3/25, with a daily change of -259 [3]. - The 04 - 05 spread changed from -15 on 2/25 to 13 on 3/25, with a daily change of 10 [3]. - The 04 - 06 spread changed from -22 on 2/25 to 15 on 3/25, with a daily change of 7 [3]. - The 06 - 09 spread changed from 36 on 2/25 to 253 on 3/25, with a daily change of 8 [3]. 3.2 Futures Contracts - The BU main contract price changed from 3358 on 2/25 to 4410 on 3/25, with a daily change of 9 [3]. - The trading volume changed from 189,401 on 2/25 to 1,073,847 on 3/25, with a daily change of -202,717 (-30) [3]. - The open interest changed from 327,972 on 2/25 to 350,606 on 3/25, with a daily change of 1,740 (-5) [3]. 3.3 Spot Prices - The Brent crude oil price was N/A on 2/25 and 100.8 on 3/25, with a daily change of -0.4 [3]. - The Jingbo spot price changed from 3,320 on 2/25 to 4,250 on 3/25, with a daily change of -100 [3]. - The Shandong (non-Jingbo) spot price changed from 3,300 on 2/25 to 4,200 on 3/25, with a daily change of -150 [3]. - The Zhenjiang warehouse spot price changed from 3,330 on 2/25 to 4,230 on 3/25, with a daily change of -220 [3]. - The Foshan warehouse spot price changed from 3,230 on 2/25 to 4,200 on 3/25, with a daily change of -250 [3]. 3.4 Profits - The asphalt Ma Rui profit was N/A on 2/25 and -204 on 3/25, with a daily change of -60 [3].

Report Summary 1. Report Industry Investment Rating - No information provided 2. Core Viewpoints - No information provided 3. Summary by Relevant Catalog 3.1 Basis and Spread - The Shandong basis (+80) (non-Jingbo) changed from 22 on 2/25 to -130 on 3/25, with a daily change of -159 [3]. - The East China basis (Zhenjiang warehouse) changed from -28 on 2/25 to -180 on 3/25, with a daily change of -229 [3]. - The South China basis (Foshan warehouse) changed from -128 on 2/25 to -210 on 3/25, with a daily change of -259 [3]. - The 04 - 05 spread changed from -15 to 13, with a daily change of 10 [3]. - The 04 - 06 spread changed from -22 to 15, with a daily change of 7 [3]. - The 06 - 09 spread changed from 36 to 253, with a daily change of 8 [3]. 3.2 Futures Contracts - The BU main contract price changed from 3358 on 2/25 to 4410 on 3/25 [3]. - The trading volume changed from 189,401 on 2/25 to 1,073,847 on 3/25, with a daily change of -202,717 (-30) [3]. - The open interest changed from 327,972 on 2/25 to 350,606 on 3/25, with a daily change of 1,740 (-5) [3]. 3.3 Spot Prices - The Brent crude oil price changed from N/A to 100.8 on 3/25, with a daily change of -0.4 [3]. - The Jingbo spot price changed from 3320 on 2/25 to 4250 on 3/25, with a daily change of -100 [3]. - The Shandong (non-Jingbo) spot price changed from 3300 on 2/25 to 4200 on 3/25, with a daily change of -150 [3]. - The Zhenjiang warehouse spot price changed from 3330 on 2/25 to 4230 on 3/25, with a daily change of -220 [3]. - The Foshan warehouse spot price changed from 3230 on 2/25 to 4200 on 3/25, with a daily change of -250 [3]. 3.4 Profits - The asphalt Ma Rui profit changed from N/A to -204 on 3/25, with a daily change of -60 [3].

Group 1: Report Industry Investment Rating - No relevant information provided Group 2: Core Viewpoints - No relevant information provided Group 3: Summary by Directory 1. Basis and Spread - The basis in Shandong (+80) (non-Jingbo) changed from 32 on 2/24 to 29 on 3/24, with a daily change of 320 [3] - The basis in East China (Zhenjiang Warehouse) changed from -18 on 2/24 to 49 on 3/24, with a daily change of 260 [3] - The basis in South China (Foshan Warehouse) changed from -68 on 2/24 to 49 on 3/24, with a daily change of 260 [3] - The spreads between contracts 04 - 05, 04 - 06, and 06 - 09 also had significant changes from 2/24 to 3/24 [3] 2. Futures Contract Data - The price of the BU main contract changed from 3348 on 2/24 to 4401 on 3/24, with a daily change of -260 [3] - The trading volume changed from 257,381 on 2/24 to 1,275,134 on 3/24, with a daily change of 218,965 [3] - The open interest changed from 332,156 on 2/24 to 348,738 on 3/24, with a daily change of -29,028 [3] - The warehouse receipts remained at 36,100 from 3/17 to 3/24 [3] 3. Crude Oil and Asphalt Prices - The price of Brent crude oil changed from 71.4 on 2/24 to 101.2 on 3/24, with a daily change of -8.2 [3] - The prices of asphalt from different sources (Jingbo, Shandong non-Jingbo, Zhenjiang Warehouse, Foshan Warehouse) also changed from 2/24 to 3/24 [3] 4. Profit - The asphalt MRE profit changed from 257 on 2/24 to -136 on 3/24, with a daily change of 440 [3]