High and low-sulfur fuel oil is expected to follow oil prices to maintain a range

On May 9th, the main contract of fuel oil continued to rise, with an intraday increase of more than 3%; the main contract of low-sulfur fuel oil (LU) fluctuated at a high level, with an intraday increase of nearly 2%. Everbright Futures believes that the supply and demand of high-sulfur fuel oil may continue to be tight under the support of the peak season of power generation demand in the Middle East and South Asia; and although the Al Zour refinery in Kuwait recently resumed the transportation of low-sulfur fuel oil, due to the spring refinery maintenance Restricting supply, Asian low-sulfur fuel oil markets will be tight in the coming weeks. There were a large number of cancellations of FU warehouse receipts yesterday, which may ease the pressure on the market in recent months. In the short term, it is expected that high- and low-sulfur fuel oil will follow oil prices to maintain range fluctuations, and cracking may be stronger.