Institution: In the short term, it is expected that the absolute price of fuel oil may follow the range of crude oil

On Tuesday (November 29), the main fuel oil contract FU2301 closed up 1.
39% at 2628 yuan / ton; The main contract for low-sulfur fuel oil LU2302 closed up 5.
17% at 4416 yuan / ton
.

The logic of the sharp strengthening of low-sulfur fuel oil on November 28 is mainly due to the marginal improvement of oil prices and its own fundamentals, from the supply side, the number of low-sulfur arbitrage cargoes in December may be reduced again, while the recent rise in gasoline cracking spreads may prompt Asia-Pacific refiners to increase the utilization rate of catalytic crackers, which in turn may lead to a certain degree of tightening of regional low-sulfur fuel oil supply
.
In addition, Singapore inventories fell sharply last week, and inventories are expected to continue their downward trend
this week.
In the short term
, it is expected that the absolute price of fuel oil may follow the range of crude oil.