High costs combined with weak demand result in low refining profit performance.

In April, the cost of maintaining crude oil remained high and volatile. Despite the possibility of a reduction in Middle East geopolitical risk premiums, short-term oil costs remain high and refining costs are also high. Currently, gasoline and diesel are returning to fundamental driving logic. Gasoline demand is seasonally weak as high oil prices suppress self-driving travel, while diesel demand has stabilized. Downstream sectors mainly focus on inventory digestion, with a lack of demand following market highs. Despite expectations of a decline in resource supply, the supportive factors are limited. Considering the pressure of accumulated inventory, gasoline and diesel prices are expected to fluctuate downward at high levels in April. It is expected that the comprehensive income of gasoline and diesel products in April will decrease month-on-month, but under high cost pressures, refining profits are expected to marginally decline in April.