The negative value of US Oil Price affects the Investment of "Paper crude Oil"

Published: Apr 22, 2020 16:10 (GMT+8)

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SMM4 22: due to oil-producing countries to increase production, reduce prices and other operations led to crude oil fell to 20 US dollars / barrel of historical low prices, many investors think that has reached the expected bottom and entered the market to copy the bottom. However, the May contract of US crude oil is due to delivery this week, and negative oil prices have emerged due to inventory capacity and other reasons. Many crude oil investors have suffered serious losses, while the Bank of China's original oil investors have not only lost all the principal, but even upside down the bank money (- 37.63 US dollars / barrel =-266 yuan / barrel). )

On April 22, the Bank of China announced that it would suspend customers' new trading in crude oil Bao from today. At the same time, by our bank's careful confirmation, on April 20, 2020, WTI crude oil May futures contract CME official settlement price-$37.63 / barrel is the effective price. According to the Bank of China Limited Financial Market personal Product Agreement signed between the customer and our bank, the US crude oil contract for our crude oil products will be settled or transferred with reference to the official settlement price of CME.

According to the official website of the Bank of China, Yuan Youbao is a trading product of crude oil futures contracts issued by the Bank of China to individual customers at home and abroad. According to the reference object of the quotation, its products are divided into US crude oil products and British crude oil products. Among them, the benchmark of US crude oil is "WTI crude oil futures contract", which is denominated in US dollar (USD) and RMB (CNY). Bank of China as a market maker to provide quotations and risk management. Investors can open an account and deposit a full margin to do long and short two-way choice transactions. Some investors said that BOC should settle at $11.7 at the time node that stopped trading at 22:00 on April 20, rather than at-$37.63. Because after 22:00, the client has no business.

Industry insiders also said that Bank of China original oil treasure has a risk control problem, it did not implement the warehouse transfer operation in advance. It is understood that in addition to the Bank of China, there are other investment institutions with paper crude oil business, such as Industrial and Commercial Bank of China, Construction Bank and other crude oil business, which completed the monthly exchange work as early as 4.15, and the closing price was between 21 and 20 US dollars per barrel at that time.

Risk hint: due to the recent decline in global crude oil demand and crude oil storage problems are still unresolved, oil prices are volatile, the relevant investors should strengthen the awareness of risk control, rational investment.

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