Part A: Review (2018/10/15-2018/10/19)

From October 15, 2018 to October 19, 2018：the closing price of crude oil futures SC1812 contract on Friday was 551.8 yuan, 21.5 yuan lower than the closing price of the last trading day of last week. The highest price for this week is 575.3 yuan/barrel, and the lowest point is 545.6 yuan/barrel. This week (2018/10/15-2018/10/19), the total volume of SC1812 contracts was 1,793,256 lots, an increase of 176,566 lots from last week. After the close of trading this Friday, open interest was 33,118 lots, a decrease of 5,398 lots from the last trading day of last week.

Part B: Market Dynamics

1. Exchange On October 19, 2018, INE announced《Announcement of Market Makers for Crude Oil Futures》.In accordance with Market-Making Management Rules of Shanghai International Energy Exchange, Shanghai International Energy Exchange announces 15 Market Makers.

2. Crude oil production China's domestic crude oil production in September fell 2.4% year-on-year to 15.18 million barrels, equivalent to 3.69 million barrels per day. Crude oil production in January-September fell 1.9% year-on-year to 141.13 million barrels, equivalent to 3.77 million barrels per day.

3. Policy At 24 o'clock on October 19, domestic refined oil prices ushered in a new round of adjustment. According to the National Development and Reform Commission: gasoline is raised by 165 yuan per ton and diesel is raised by 160 yuan per ton. Analysts believe that fluctuations in international oil prices have an impact on domestic refined oil prices. The next price adjustment window will open at 24:00 on November 2, 2018.

4. Refinery 2 According to data released by the National Bureau of Statistics of China, China's crude oil processing volume in January-September increased by 8.1% from the same period of the previous year to 452.54 million tons, or 12.1 million barrels per day. In September, the processing volume of crude oil was 51.34 million tons, an increase of 4.9% year-on-year. The growth rate dropped by 0.7 percentage points from the previous month; the average daily processing was 1.711 million tons, 88,000 tons more than the previous month. Based on data from the National Bureau of Statistics of China, China's crude oil processing volume in September rose to 12.49 million barrels, higher than 11.85 million barrels in August. The increase in processing rate coincided with a four-month high in China's crude oil imports. In September 2018, China's crude oil daily processing volume reached a record high, due to rising fuel demand and lucrative conditions, some independent refineries restarted after a long period of summer shutdown. Refinery processing is expected to increase further in the fourth quarter as some state-owned refineries restart production after overhaul maintenance.