Settlement price: 675.0 RMB/barrel (October 16th)

Analysis: Due to the impact of the Israeli-Palestinian conflict, tensions have intensified, and supply concerns have intensified. Last Friday, international crude oil futures jumped by nearly 6%. The domestic crude oil market rose on Monday. On October 16th, the main contract settlement in the domestic SC crude oil market was 675.0 RMB/barrel, an increase of 3.35%. On a macro level, the Federal Reserve's interest rate hike is gradually coming to an end, and recent statements have been relatively dovish, reducing the likelihood of the Fed continuing to raise interest rates. In addition, on the supply side, the market's focus is on the Israeli-Palestinian conflict, and the worsening geopolitical situation has raised the crude oil premium. At the same time, global crude oil inventories are at historic lows, and supply risks have sharply increased, significantly boosting the oil market.

In the short term, the situation on the mainland will be turbulent, and oil prices may intensify volatility, with an increase in amplitude. It is not ruled out that oil prices may continue to rise. The mid-term supply and demand game continues, and with supply taking the upper hand, the oil market valuation will remain high.

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