1. Report Industry Investment Rating - No information provided regarding the industry investment rating 2. Core View of the Report - Overnight news of OPEC's potential production increase in July hit oil prices, causing fuel oil to decline. G7's consideration of lowering the export price cap for Russian energy products provided some support, stabilizing prices. In the short - term, fuel oil is expected to oscillate at low levels, waiting for news. FU2507 is expected to trade in the 2980 - 3030 range, and LU2507 in the 3470 - 3520 range [3] - The market structure of Asian high - sulfur fuel oil has strengthened due to strong seasonal demand for utility power generation. However, increased supply in some regions and more shipments of Dar mixed crude from South Sudan have added to the low - sulfur fuel oil blending raw material pool, pressuring the low - sulfur fuel oil market fundamentals [3] - The行情 is driven by the combination of uncertain supply - side production cuts and neutral demand [4] 3. Summary by Directory 3.1 Daily Tips - The current situation of fuel oil: The market is affected by OPEC's production increase news and G7's price - cap consideration. The expected price ranges for FU2507 and LU2507 are given. The fundamentals show a mixed picture, with high - sulfur fuel oil supported by demand and low - sulfur fuel oil facing pressure. The basis indicates a spot premium over futures, inventory increased in the Singapore region, and the price is above the 20 - day line with different trends in high - and low - sulfur fuel oil's main positions [3] - Futures and spot price changes: The prices of FU and LU's main contracts, as well as the basis, have changed to varying degrees. The spot prices of different types of fuel oil in different regions have also increased [5][6] 3.2 Multi - and Short - Term Concerns - Bullish factors: OPEC+ continues additional production cuts (execution to be tracked), and China has issued import quotas [4] - Bearish factors: The optimism on the demand side remains to be verified, and there is a possibility of relaxed sanctions on Russia [4] 3.3 Fundamental Data - Fundamentals: Asian high - sulfur fuel oil is supported by seasonal demand, while low - sulfur fuel oil is under pressure from increased supply and raw material availability [3] - Basis: The basis for Singapore high - sulfur fuel oil is 204 yuan/ton, and for low - sulfur fuel oil is 229 yuan/ton, indicating a spot premium over futures [3] - Main positions: High - sulfur fuel oil's main position is long, with a decrease in long positions; low - sulfur fuel oil's main position is short, with an increase in short positions [3] 3.4 Spread Data - No specific data analysis is provided in the given content, only a chart of the high - and low - sulfur futures spread is shown [13] 3.5 Inventory Data - Singapore fuel oil inventory on May 14 was 2490.9 million barrels, an increase of 78 million barrels compared to the previous period, showing a bearish signal [3][8]

Report Summary 1. Report Industry Investment Rating No relevant information provided. 2. Core Viewpoints - The supply of low - sulfur fuel oil may be quite tight before June due to the continuous closure of the east - west arbitrage window, while the downstream bunker fuel demand (especially at the terminal direct supply end) has limited support. The Asian high - sulfur fuel oil market structure has strengthened driven by the seasonal increase in power generation demand and strong buying in the downstream bunker fuel market [3]. - Overnight crude oil continued to decline, while fuel oil was slightly stronger than crude oil due to short - term fundamental support and showed obvious resistance to decline. It is expected to continue this performance today. FU2507 is expected to operate in the range of 2980 - 3040, and LU2507 in the range of 3585 - 3640 [3]. - The market is driven by the combination of the uncertain supply - side production cuts and neutral demand [4]. 3. Summary by Directory 3.1 Daily Prompt - Singapore fuel oil inventory on the week of May 14 was 24.909 billion barrels, an increase of 780 million barrels, which is bearish [3]. - The price of fuel oil is running near the 20 - day line, and the 20 - day line is flat, showing a neutral trend [3]. - High - sulfur main positions are long positions with a decrease in long positions, which is bullish; low - sulfur main positions are short positions with an increase in short positions, which is bearish [3]. - The basis of Singapore high - sulfur fuel oil is 159 yuan/ton, and that of Singapore low - sulfur fuel oil is 236 yuan/ton, with the spot at a premium to the futures, which is bullish [3]. 3.2 Multi - Short Concerns - **Likely Positives**: OPEC+ additional production cuts are extended, but implementation needs to be tracked; China's import quota is released [4]. - **Likely Negatives**: The reduction in supply needs further observation, and demand is neutral; there is a possibility of relaxation of sanctions on Russia [4]. 3.3 Fundamental Data - The price of Singapore high - sulfur fuel oil is 433.89 US dollars/ton, and the price of Singapore low - sulfur fuel oil is 526.5 US dollars/ton [3]. - The previous value of the FU main contract futures price was 3048, and the current value is 3026, a decrease of 22 or 0.72%. The previous value of the LU main contract futures price was 3617, and the current value is 3639, an increase of 22 or 0.61% [5]. - The previous value of the basis of FU was 166, and the current value is 159, a decrease of 8 or 4.64%. The previous value of the basis of LU was 212, and the current value is 236, an increase of 24 or 11.41% [5]. - The previous value of the price of Zhoushan high - sulfur fuel oil was 519.00 US dollars/ton, and the current value is 508.00 US dollars/ton, a decrease of 11.00 or 2.12%. The previous value of the price of Zhoushan low - sulfur fuel oil was 520.00 US dollars/ton, and the current value is 510.00 US dollars/ton, a decrease of 10.00 or 1.92% [6]. 3.4 Inventory Data - Singapore fuel oil inventory on February 26 was 27.969 billion barrels, a decrease of 200 million barrels; on March 5, it was 28.319 billion barrels, an increase of 350 million barrels; on March 12, it was 28.309 billion barrels, a decrease of 100 million barrels; on March 19, it was 28.549 billion barrels, an increase of 240 million barrels; on March 26, it was 28.019 billion barrels, a decrease of 530 million barrels; on April 2, it was 26.669 billion barrels, a decrease of 1.35 billion barrels; on April 9, it was 27.109 billion barrels, an increase of 440 million barrels; on April 16, it was 25.989 billion barrels, a decrease of 1.12 billion barrels; on April 23, it was 25.989 billion barrels, with no change; on April 30, it was 23.729 billion barrels, a decrease of 2.26 billion barrels; on May 7, it was 24.129 billion barrels, an increase of 400 million barrels [8]. 3.5 Spread Data No specific analysis of spread data is provided, only a graph of the high - low sulfur futures spread is shown [12].