Settlement price: 557.6 RMB/barrel (as of January 8)

Analysis: Last Friday, due to the tense geopolitical situation in the Red Sea, international crude oil prices rose significantly overnight. The settlement price of the main WTI crude oil futures contract in the United States was $73.81 per barrel, with an increase of $1.62 or 2.2%. The settlement price of the Brent crude oil futures main contract was $78.76 per barrel, up $1.17 or 1.5%. However, on Monday of this week (January 8th), the domestic crude oil market showed weak momentum, with SC crude oil's main contract settling at 557.6 RMB/barrel, an increase of only 0.8%. Due to weak market sentiment, SC crude oil entered a long short tug of war as the international crude oil market in Asia fell. Lido still faces the unresolved Red Sea crisis. From a bearish perspective, on the macro level, the better than expected US employment data has lowered the probability of the Federal Reserve lowering interest rates in March, leading to a cooling of oil demand expectations. Adding to last week's EIA report, which showed a higher than expected increase in US refined oil inventories, the weakening of US oil demand has weighed on the market.

In the short term, the oil market will continue to operate in a game of supply risks caused by geography and a slowdown in future demand, with a focus on range fluctuations.

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