Futures: fuel oil rose on Wednesday, closing at 1,745 (up 10), reducing more than 29,000 positions and reducing positions. OPEC+ agreed to extend the current measures of 9.7 million barrels/ day production reduction to the end of July, but Saudi Arabia's stop of additional production reduction diluted the benefits of OPEC+ extending production reduction, which affected the high adjustment of crude oil market. Fuel oil fluctuates in short term or interval. Pay attention to international news, epidemic development and market sentiment change.

Strategy analysis: OPEC's production reduction agreement continues to strengthen the support of low oil price, but the short-term supply-demand contradiction is still under pressure. With the sharp rebound of oil price, the monthly difference narrowed, and the increase of oil storage demand led to the rise of freight, supporting the forward price difference between the internal and external prices of fuel contracts. Although the worst stage of crude oil demand has passed, considering the current situation of the global COVID-19epidemic and the possible adverse impact of Sino US friction on the oil price, crude oil still needs to recover. If the accumulated reservoir pressure picks up, the oil price has the risk of further exploration.

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