Chapter 967 [Oil prices are not as good as cabbage prices]
On April 15, China Construction Bank, ICBC and other institutions completed the work of moving their crude oil business to different months, closing out the 2005 contract and moving their positions to the 2006 contract.
Just yesterday, the price of WTI crude oil futures plummeted again, falling from US$22.41 to US$20.11, an intraday drop of more than 10%. However, the largest production reduction agreement in history was announced on April 13, but the market did not buy it and killed you by 10% the next day.
A drop of one point came out.
Today, the price of WTI crude oil futures fell again. The intraday drop reached -4.52%, and the price hit a new low of $19.20.
However, the plummeting oil price has caused many domestic crude oil investors to aggressively hunt for the bottom, and there are even rumors circulating in the circle that the oil price is not as good as the price of cabbage.
[Crude oil: Living without self-respect is like a cabbage price...]
[Baicai: Do you dare to compare with me (with a look of disdain)? 】
[Crude oil: Then I can compare with water, right? 】
[Water: Brother, I am also more expensive than you, okay? 】
The price of oil is not as good as the price of cabbage and cheaper than water. Some crude oil players even made a serious calculation to prove that the price of cabbage is more expensive than the current crude oil.
According to the conversion of 1 barrel of crude oil equal to 159 liters equal to 6.47 U.S. dollars, combined with the current exchange rate, 1 barrel of crude oil equals 45.78 yuan, and 1 ton of crude oil equals 7.33 barrels, equals 47.43 U.S. dollars, and equals 335.58 yuan.
The average price of cabbage in first-tier cities such as the capital is 2.7 yuan/kg, and the price of Chinese cabbage per ton is 2,700 yuan. Ordinary bottled mineral water is generally 0.55 liters per bottle, priced at 2 yuan/bottle, and 1 barrel of mineral water (159 liters) is equal to
578 yuan.
The prices of Chinese cabbage and mineral water are obviously more expensive than crude oil, so many people who see the current crude oil price almost feel that buying at the bottom is an opportunity to make money by giving away money.
Youdao has been working as a part-time job for ten years, and he lives in the palace for one night.
A large number of crude oil players are rushing into the market to hunt for the bottom. As of today, Yuanyoubao’s positions on overseas exchanges have soared to 78,800 lots. One lot in the US oil futures market is 1,000 barrels of oil, which means
The current position of the Yuanyoubao platform has reached an astonishing 78.8 million barrels of crude oil.
This amount has almost accounted for more than 60% of the May contract of New York crude oil, and as time passes, Yuanyoubao's positions are still increasing because more crude oil players are increasing their chip bets, including new ones.
Players waited, and the platform continued to increase positions on overseas exchanges.
…
It’s Friday, April 17th.
Today's A-share market has come out of a volatile market that opened high and fell back. The daily K-line closed with an inverted hammer line, closing at 2838 points, up +0.66%. The two cities were able to increase their volume slightly throughout the day, but they fell back after rising.
The reason is that the stock king jumped by more than a point in the late trading, scaring the funds.
Tiansheng Holdings also closed an inverted hammer today. The stock price reached a maximum intraday price of 143,332.39 yuan. It was only 236.47 yuan away from the previous high of 143,568.86 yuan, or it would reach a new high if it rose by +0.17%.
As a result, there was no breakthrough!
Finally, the stock price closed up +0.54% at 141,925.09 yuan, with a turnover of 53.2 billion yuan, and an after-hours market value of 11.35 trillion yuan.
The stock king is just one step away but refuses to break through to a record high. This makes all the funds in the market quite worried and seems to be hesitant. After all, the stock king is the weathervane of Big A. If this stock enters the adjustment stage, the market will definitely be under pressure.
, a plate with a size exceeding 11 trillion is no joke.
And from all aspects, when the stock king reaches this point, the market will definitely change, whether it is up or down. For many people, it is a gamble.
…
Meanwhile, the situation in the WTI crude oil futures market.
Since the largest production reduction agreement in history was reached on April 13 to today, international oil prices have experienced five consecutive declines. From the closing price of US$22.76/barrel on April 12 to today, the price of WTI crude oil futures has dropped by -19.72%.
Today's intraday trading was even more explosive. The price of WTI crude oil futures once reached a record low of US$17.31/barrel, with the largest intraday decline reaching -12.88%. It then rebounded to US$18.27/barrel, and the final decline narrowed to -8.05%.
But oil prices continue to hit new lows.
Institutions such as ICBC and China Construction Bank have completed the work of moving positions to different months, but Yuanyoubao's positions are soaring. From the time Lu Ming held a video conference on April 14 to today, April 17, there were only 3 transactions.
The holdings of May WTI crude oil futures, which will be settled on the same day, are astonishingly high at 149,000 lots, which is equivalent to nearly 150 million barrels of crude oil. The size of this position is undoubtedly astonishing.
It can be seen that the harder the oil price falls, the more aggressive the long-term players in crude oil will be in bargain hunting, and most of these players are from domestic investors, accounting for more than 90% of the positions. If we say that retail players are all small fish and shrimps,
, then Yuanyoubao has become the only big fish among them, and its position has soared to 93,500 lots, which is 93.5 million barrels of oil.
And this data is almost completely exposed under the nose of CME Group.
…
Weekend of April 19th.
Wang Yue personally came to visit Lu Ming's private residence today and sent several pieces of information.
At this moment, the two of them were sitting on the sofa in the main living room. Lu Ming was looking at the documents handed over by Wang Yue. Many data and layout conditions were written in them.
Information such as oil pipelines, storage facilities, oil breaks and refineries.
Data show that the total operational storage capacity of commercial crude oil in North America, excluding strategic petroleum reserves, is 557 million barrels, of which the 15 terminals in Cushing have a total storage capacity of more than 90 million barrels, and the operational crude oil storage capacity is 76.6 million barrels.
barrels, accounting for 13.7% of the United States.
In addition, Cushing's crude oil storage capacity, according to statistics from the North American Energy Information Administration, also includes tank farms in Creek County and Linton County, Oklahoma.
Wang Yue used almost all the resources of Wanxiang Group to operate and settled several crude oil storage business operating companies.
Magellan Midstream Partners has a storage capacity of 7.8 million barrels. The storage facility was formerly owned by Yingguo Petroleum Company. It has a large number of ammonia and oil pipelines in the central North American oil-producing states, including 83 petroleum product terminals and more than 9,000 miles of finished products.
Oil pipeline, 800 miles of crude oil pipeline and 1,100 miles of ammonia pipeline system.
Enbridge Energy Partners, with a capacity of 20.06 million barrels, is a Canadian multinational energy transportation company located in Calgary, Alberta. Its main business is energy transportation, distribution and production in North America.
The Keystone Pipeline, operated by TransCanada, runs from the Canadian province of Alberta to Port Arthur, Texas. Cushing is an intermediate point of the pipeline, with a maximum transportation capacity of 590,000 barrels per day.
…
Lu Ming looked at it for a while and put the materials aside. At this time, Wang Yue looked at him and said: "Brother, I will strictly follow your instructions here. We don't want oil. If we want to make money, the oil price will fall into negative numbers."
Wang Yue was very unsure about this. If it weren't for Lu Ming, he would definitely not have done this deal.
"The expectation to make money is that the oil price will fall into negative numbers. Do you still want to transport so much physical crude oil from the territory of the United States?" Lu Ming said with a smile. This time it is a purely capital-operated financial game.
Through the hands of Wang Yue and his Wanxiang Group's resources in North America, some local partners were settled. The physical crude oil was given to them for free, and some leased storage and oil pipelines were used by the partners. Wanxiang took advantage of negative oil prices.
The money goes away.
When the oil price reaches negative prices, not only can you obtain crude oil without spending a penny, but the other party will also have to pay for the oil, and all you need here is to have the ability to deliver physical goods.
The ones who paid the bill for this were naturally Yuanyoubao and its large number of crude oil players who bought at the bottom and opened long. They actually made money from the losses of domestic investors, but Lu Ming also played a trick in addition.
That is to ask Wang Yue to run a large number of credit default swaps with some small and medium-sized financial institutions in Europe and the United States, that is, to bet against the CME Group that the CME Group will default. Once it defaults, it can receive liquidated damages from the insurance company.
If you don’t go to a big institution over there to play this bet, you are mainly worried about being noticed by your opponent. If you go to a small or medium-sized bank or insurance institution to play this bet, you can create a short-term information lag. A single institution naturally has a small amount, but here you can do it.
Thousands of dollars, if there are thousands of dollars there, the total can reach the expected target profit scale, which is quite considerable.
And those financial institutions, without exception, took the bet because they found that the other party actually bet that the CME Group would default.
How can this be?
There is a fool who comes to give you money. Don’t give it for free. It’s tens of millions of dollars, neither too much nor too little. Let’s take a gamble!
